How Much Can You Afford?
Before you go shopping for a home, you’ll need
to know how much you can afford to spend. To determine this, you’ll need a clear picture
of your income and your expenses.
Once you’ve created
a budget and have identified your total expenses
and income, you can make the most of any funds that
are left over to start saving for your own home.
You will also need to know how much money you can raise for the one-time costs of buying a home — the down payment and closing costs.
We’ve created a number of mortgage calculators to help you determine:
Saving for a Down Payment
There are many sources that people draw on for a down
payment. These include savings accounts, investments,
Registered Retirement Savings Plans (RRSPs) and gifts
from relatives.
An Automatic Savings Program (ASP) can
be one of the most effective ways to accumulate a down
payment. An amount of your choosing is automatically
withdrawn from your bank account at regular intervals
(such as every payday or every month) and set aside
in an investment account. Talk to your RBC Royal Bank
Representative about setting up an ASP.
If you have been making contributions to a Registered
Retirement Savings Plan (RRSP), and you are a first-time
home buyer, you may be eligible for the RRSP First-Time
Home Buyers’ Plan. Learn more about your down payment options.
Why it’s Smart to Get a Pre-approval
One of the best ways to determine how much you can afford is to get a “pre-approved mortgage.”
When you’re ready to begin your home search, we will look at your financial situation and determine what you can afford, based on your income, expenses and other debts. You will be pre-approved for a set mortgage amount at an interest rate that’s usually guaranteed for 90 days.
Getting a pre-approval is not a formal application for a mortgage, and it does not obligate you in any way.
A pre-approved mortgage simply gives you a better idea of how much you’re qualified to borrow and helps to ensure that your monthly payments will be affordable.
It also helps make finding a home easier because you can limit your search to those houses you know you can afford.
Speak to a Mobile Mortgage Specialist to help you get started or you can get an online pre-approval today.
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How to Get Started
An RBC Royal Bank Mortgage Specialist can answer any of your mortgage questions. Our team of Mobile Mortgage Specialists can meet with you wherever it’s most convenient for you.
If you are looking for a Mortgage Specialist that speaks your language, you can find one through our Mortgage Specialist Locator. |
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The content of this website is provided
for the general guidance and benefit of our clients.
This website is for informational purposes only and is
not intended to provide specific advice. See
full disclaimer.
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