Affordability vs. Qualifying: What’s the Real Question for First-Time Homebuyers?
Many first-time homebuyers focus on how much they qualify for, but the smarter question is: How much can I truly afford? Just because a lender approves a certain loan amount doesn’t mean it aligns with your lifestyle or long-term financial health.
"How much can I qualify for?"
Is one of the first questions most first-time homebuyers ask.
"How much can I afford?"
Is the better question to ask.
Yes, qualifying for a mortgage is important—but just because a lender says you’re approved for a certain amount doesn’t mean that amount fits comfortably within your life.
If you can truly afford the home, chances are, you'll also qualify for it. But the reverse isn’t always true.
So, what does "afford" really mean?
Affording a home goes beyond just covering your monthly mortgage payment. You should also be accounting for:
Property taxes
Homeowner’s insurance
Utilities and maintenance
Transportation costs
Food and household needs
Entertainment and lifestyle spending
Savings and emergency funds
Owning a home should bring you joy and stability—not financial stress. If you stretch your budget to the limit just to "qualify" for a bigger loan, you might find yourself house-poor and unable to enjoy your new space.
Closing Costs - Are you prepared?
Buying a home comes with closing costs -These are the final fees and expenses due when you officially take ownership of your new home, and they can add up quickly.
So, what exactly are closing costs?
Closing costs typically include:
Legal Fees
Appraisal and inspection fees
Land Transfer Tax (if buying in Toronto, you need to account for Provincial and Toronto taxes)
Title Insurance and other closing costs fees
How much should you budget?
On average, closing costs range from 2% to 5% of your home’s purchase price. That means if you're buying a $600,000 home, you could pay anywhere from $12,000 to $30,000 at closing.
The bottom line: Buy a home that fits your whole life, not just your lender’s formula.
Ready to buy smart and stress-free?
When you work with me, I don’t just look at your loan numbers—I help you understand your full financial picture. Together, we’ll walk through
Questions about mortgages?
At Red PocketBook, Amanda offers financial coaching to all of her mortgage clients - that she serves as a Mortgage Agent under Zoom Mortgages. Learn more about Amanda’s mortgage services and incentive programs.
