How much home can you afford?
Shopping for the home of your dreams requires knowing how much you can afford to spend, which for most buyers ties directly into a mortgage.
Financial institutions in Canada look at a buyer’s Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to help determine how much mortgage to approve, and therefore, how much home a person can afford.
Diversity and volume of home options offer something for homebuyers of every stage
There is no such thing as a “typical” home in the $500,000 to $750,000 price range in Calgary’s market today.
“It is more than a starter home, but no mansion,” said Ray Riley, a REALTOR® with RE/MAX First. “It could even be a teardown in a desirable (inner-city) neighbourhood, or a luxury apartment downtown. It just depends on what the buyer is looking for, and where.”
Limited budget need not limit buyer options
A dollar may not go as far as it used to, but $300,000 can still take Calgary homebuyers a long way.
“At that price, you could look at a one- or two-bedroom apartment with underground or outside parking, and an elevator if you want a high-rise,” said Monique Windrem, a REALTOR® and leasing agent with Hope Street Real Estate Corp. “You might get extra storage, and if you opted for a one-bedroom, you may also have a gym, concierge and security if you’re not set on living downtown.”
