Assessing your home-buying readiness

Do you have a down payment? (At least 5% of the home purchase price is recommended.)

Yes No

Click here for advice on planning for your down payment.

Have you budgeted for up-front expenses, including closing, moving and set-up costs?

Yes No

Have you reviewed and revised your monthly budget and included all the new costs of owning a home?

Yes No

Having a solid, long-term source of household income is important when you’re committing to buy a home. Could anything change your income situation or your spouse’s, such as a maternity or paternity leave, or returning to school?

Do you have a solid, long-term source of income?

Yes No

When a financial institution evaluates your mortgage application, they look at two key financial ratios: your gross debt service ratio and your total debt service ratio.

Your gross debt service ratio calculates your monthly mortgage costs as a percentage of your monthly gross income. Generally, your total mortgage payment, taxes and insurance should be 32% or less of your gross monthly income. Your total debt service ratio calculates your total monthly debt payments (including mortgage, credit cards, student debt and car payments) as a percentage of your total monthly income. Total debt payments should not be more than 40% of your total gross income.

Are your debts safely within these financial ratios?

Yes No

Have you confirmed that your credit report is in good order?

Yes No

How long do you plan to live in your new home? Why is this important?

Less than five years Five years or more

Almost everybody feels pride in their home. But not everybody wants the same type of home. Some people enjoy the yard work, snow shoveling and maintenance that goes with a traditional detached house. Others prefer to pay a condo fee in exchange for having many of these tasks done for them.

Have you thought about the type of housing that fits your lifestyle?

Yes No