One of the most common questions homebuyers ask is: “How much mortgage can I actually afford?” While understanding your budget is essential, mortgage affordability depends on more than just your income. Factors like debt, down payment, and lender rules all play a role.
That’s why having the right tools – and the right advice – matters.
Income Matters – But Stability Is Key
Lenders start by reviewing your gross household income, including salaries, bonuses, and sometimes commission or self-employment earnings. Stability is important. If you’re self-employed or have variable income, lenders typically review at least two years of financial history.
Monthly Debts and Expenses
Your current financial commitments impact how much you can borrow. Credit cards, car loans, student loans, and other obligations are factored into your debt-to-income ratio. The more monthly debt you carry, the lower your approved mortgage amount may be.
Down Payment and Savings
Your down payment directly affects affordability. While many buyers assume they need 20% down, there are options available with smaller down payments. However, a larger down payment can lower your monthly payments and reduce overall interest costs. Lenders also want to see savings for closing costs and emergencies.
Start With the Mortgage Calculator
A mortgage calculator is a great first step. The affordability calculator on our Rampone-Marsh Mortgages website helps estimate monthly payments and borrowing ranges based on your numbers. While calculators will provide helpful insights, they don’t account for every lender rule or the federal mortgage stress test, so it’s best to give our team a call!
Why a Broker Makes the Difference
This is where working with a mortgage broker adds real value. At Rampone-Marsh Mortgages we review your calculator results, apply lender-specific guidelines, and show you what you truly qualify for — not just an estimate.
Start with by clicking here on our link to the mortgage calculator on our website, and then read more about our Home Buyer Mortgage services, for personalized guidance. Call 250-801-8834 or visit us at 1290 St Paul St #316, Kelowna, BC to take the next step with confidence.
