Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
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Understanding mortgage affordability
– moneysense.ca
Let’s talk about mortgage affordability. We know that housing affordability is getting further out of reach for many Canadians. But, what determines mortgage affordability? How is it calculated by financial institutions and lenders? And what hidden costs should potential home buyers factor in before applying for a mortgage?
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First, let’s take a step back and look at what mortgage affordability means.
What does mortgage affordability mean?
Mortgage affordability refers to how much money a person can borrow to purchase a home. It’s a figure based on their household income, future living expenses (i.e. the mortgage payments, heating costs and property taxes associated with the potential home) and their current debt payment obligations…
