Before you start browsing homes or booking showings, there’s one question that matters most:
💰How much can you actually afford—comfortably?
In today’s GTA market, where affordability is a major factor, understanding your numbers is the difference between a smart investment and financial stress.
1. Start With Your Income (But Don’t Stop There)
🔑 Key Rule: Spend no more than 28–30% of your gross monthly income on housing
📌 Why This Matters: Many buyers, get approved for more than they should spend. Approval ≠ affordability
2. Understand Your Debt-to-Income Ratio (DTI)
🔑 Key Rule: Keep total debt under 36% of your income
📌 Why This Matters in 2026: With higher interest rates compared to previous years:
Your borrowing power is tighter
Lenders are stricter
3. Your Down Payment Strategy
💰 20% = avoids mortgage insurance
🏠 5–19% = more accessible, especially for first-time buyers
📌 Why This Matters: A higher down payment:
Lowers your monthly payment
Improves your long-term financial position
4. The Costs Most Buyers Forget
Don’t Overlook:
Property taxes
Home insurance
Utilities
Maintenance
✅ Reality Check: Owning a home in the GTA comes with ongoing costs that can add up quickly.
5. Get Pre-Approved (Before You Shop)
Why This Is Critical:
Defines your real budget
Strengthens your offers
Helps you act fast in competitive situations
💡 PRO TIP : The smartest buyers don’t just ask: ✘ “What can I afford?” They ask: ✔ “What can I afford while still living comfortably?”
Ready to take the next step? Get a general picture of what you can afford in today’s market: https://pauladasilva.ca/mortgage-calculator.html
👉 Download my full Buyer Guide here: https://pauladasilva.ca/buying.html
👉 Or reach out directly: https://pauladasilva.ca/contact.html
I’ll help you:
Understand your real budget
Navigate the GTA market
Avoid costly mistakes