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Unlike rent, the money you pay for your home is an investment that can grow in value over time. That's why it's ideal to buy your home as early in life as you can. Use our convenient What Can I Afford Calculator to help you determine a comfortable price range.
Like most lenders, we base our affordability calculations on two traditional debt to income principles:
Gross Debt Service Ratio (GDSR)
Your monthly housing costs - include mortgage payments, property taxes, and 50% of applicable condo fees - should not exceed 32% of your family's gross monthly income.
Total Debt Service Ratio (TDSR)
Your monthly housing costs plus all other debt (loans, credit cards, lease payments) should not exceed 40% of your family's gross monthly income.
Once you determine how much of a home you can afford, you may be ready to start house hunting. Scotiabank's Pre-Approved Mortgages give you the assurance of approval so you can take your time searching, knowing you have a locked in rate.
When shopping for a home, the following are helpful resources:
Canadian Real Estate Association
Canadian Mortgage and Housing Corporation (CMHC)
Genworth Financial Canada, a private mortgage insurance provider
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