Thoroughly review your current income and expenses. How much will your new mortgage add to your monthly expenses? Before you embark on your housing search, get a mortgage pre-approval, especially if you're a first time buyer. A mortgage pre-approval lets you know how much money you qualify for, so you can shop in comfort.

Lenders determine affordability by looking at your Gross Debt Service ratio (GDS) and your Total Debt Service ratio (TDS). The GDS ratio is based on what you can afford to pay each month; it includes mortgage payments, taxes and heating. The TDS ratio includes everything covered under GDS plus all your other financing obligations. We can help you do a complete analysis based on net income and projected budgets to determine what you can afford.