What Mortgage Can I Afford? Here’s How to Find Out

Buying a home is exciting, but figuring out how much mortgage you can afford? That part can be confusing.

Whether you’re a first-time buyer or looking to upgrade, knowing your affordable mortgage amount is the first step to a confident purchase. At Cannect, we believe in smarter borrowing. We’re not just here to tell you what you qualify for—we help you understand why, and how to get the most out of your money.

What Factors Determine What Mortgage You Can Afford?

Mortgage affordability is based on several key factors:

Your Income

Lenders typically allow 32–39% of your gross monthly income to go toward housing costs. This includes your mortgage payment, property taxes, and heating costs.

Your Debt

Your Total Debt Service Ratio (TDSR) includes all debts—credit cards, loans, car payments—along with your mortgage. Most lenders prefer this to stay under 44%.

Your Down Payment

A larger down payment lowers your monthly mortgage, makes you more attractive to lenders, and helps you avoid CMHC insurance if you put down 20% or more.

Your Credit Score

A stronger credit score gets you access to better rates and more flexibility when it comes to qualifying.

Use Cannect’s Approach to Maximize Affordability

At Cannect, we do things differently. While banks use rigid formulas, we use custom strategies based on your financial picture

  • Self-employed or don’t show high income on paper? We work with alternative lenders who look at the real story behind your finances.
  • Carrying debt? Our Home Equity Loan solutions can consolidate debt and lower your monthly obligations, helping you qualify for more.
  • Want the lowest possible payment? We’ll guide you through the difference between fixed and variable rates and how to pick the option that keeps your payments manageable.

How to Estimate Your Mortgage Affordability

While we recommend speaking to a Cannect advisor for a customized number, here’s a rough formula you can try:

(Gross Monthly Income x 0.39) – Other Monthly Debt Payments = Affordable Housing Costs

From there, you can estimate your mortgage based on current interest rates and amortization period.

Example:

If you earn $6,000/month and have $500 in monthly debts:

  • $6,000 x 0.39 = $2,340
  • $2,340 – $500 = $1,840/month available for mortgage + property taxes + heating.

Don’t Just Ask “What Can I Afford?” Ask “What’s Smart for Me?”

Just because a lender says you qualify for a certain amount doesn’t mean you should borrow that much. Cannect advisors are commission-free and focused on what’s right for you, not the bank.

Ready to Find Your Number?

Let Cannect take the guesswork out of your home purchase. Whether you’re buying your first home, upsizing, or refinancing, we’ll show you how to borrow wisely and affordably.

→ Start with a free consultation today. No pressure. Just real advice.

Check out our Make Money Count videos for expert insights and practical advice on mortgages.

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