Buying

If you’re thinking about buying your first home, the whole process might feel overwhelming. Where do you even start?

One simple way to think about it is this: when you buy a home, you’re really buying two things — the home and the mortgage.

In most cases, the mortgage is the easier one to figure out at the beginning.

Step 1: Understand What You Can Afford

Before you start browsing homes or visiting open houses, it’s a good idea to get a handle on your budget. A mortgage professional can walk you through the numbers based on your income, debt, credit score, and down payment.

But if you feel like you’re a little bit early for that and you want a general rule of thumb:

In Canada, your home purchase budget typically falls around 4.5 to 5 times your gross annual income.

So, if you earn $100,000 a year before taxes, your maximum mortgage amount (not including your downpayment) may land somewhere between $450,000 and $500,000.

Keep in mind:

  • If you have little or no other debt, that number might stretch a bit higher.

  • If your credit score is lower or you carry a heavier debt load, the amount could be lower.

  • Lenders also factor in current mortgage stress test rules, which can affect what you qualify for.

Starting with a conversation about the mortgage gives you a clear target to aim for. It’s much easier to sort out the financing than to decide where you want to live or what kind of home fits your lifestyle.

Step 2: Use the Buyer’s Triangle

Once you know your budget, the next step is to think about your priorities. One helpful tool is the Buyer’s Triangle, which includes:

  • Area

  • Features

  • Price

You can usually get two out of the three exactly the way you want, but getting all three to line up perfectly often requires compromise.

For example, if you’re focused on having four bedrooms, a double garage, and a large backyard, and you’re working within a fixed budget, you may need to consider a different area where prices are lower.

On the other hand, if you’re set on living in a specific neighbourhood close to work or family, you might need to adjust your expectations when it comes to size or finishes.

Think Long-Term, Not Just Short-Term

When you’re choosing an area, think beyond your current lifestyle. Ask yourself:

  • How far will your commute be?

  • Are you close to the people who matter most to you?

  • Will this area still suit your needs in a few years?

  • Will our family look different in the next five years?

Jobs change. Families grow. Priorities shift. Choosing a location with long-term flexibility can help you avoid moving again sooner than planned.

The Bottom Line

If you’re just starting out, focus on three key things:

  1. Speak with a mortgage professional to get a realistic idea of your budget.

  2. Decide where you can be flexible within the Buyer’s Triangle.

  3. Plan for the future as much as the present.

When you’re ready to take the next step, connect with someone who understands the process and can help you build a strategy that fits your timeline, budget, and lifestyle.