Affordability

While your lender determines your borrowing capacity, only you can truly assess your affordability. Lenders rely on standardized formulas, which may not fully capture your unique lifestyle and spending habits. It's wise to build in a financial buffer for unexpected expenses and the new costs associated with homeownership, like furnishings and maintenance. Historically, lenders used the 28/36 rule (or similar ratios in Canada) to gauge affordability, but some now stretch these limits. However, we strongly advise against maximizing your budget to this extent. Prioritize your long-term financial security and peace of mind when determining your comfortable spending range.