Know What You Can Afford

How Much Will My Monthly Mortgage Payments Be?

Knowing your affordable price range will bring your house hunting into focus.

How much of a house you can afford depends on three things:

- How much you can afford for the monthly mortgage payment
- How much of the down payment you have available
- The amortization, or length of time required to pay off the loan, assuming interest rate does not change

A Mortgage Broker or Bank Mortgage Specialist can help you determine what you can afford. Mortgage calculators are available to show you what payments to expect, and how you can save money over your repayment period:

- The Mortgage Affordability Calculator shows you how much you can afford
- The Mortgage Payment Calculator works out the mortgage payment plan that is right for you

Think back to high school economics. Remember those lessons on the laws of supply and demand, and how you swore you’d never need to know that stuff in the real world? Well, if you’re looking to buy a house, it could come in handy.

The concept is a simple one, but it teaches a valuable lesson in how housing market conditions affect price, and how understanding the market can affect your buying strategy.

In a nutshell, when there are more homes for sale than there are potential buyers, house prices drop. When there are fewer houses on the market than there are buyers, house prices will climb. When the number of homes on the market is roughly equal to the number of buyers, it’s called a balanced market.

Market conditions can vary widely across the nation, across provinces and even across neighbourhoods. The demand for housing in a given locale may be influenced by any number of factors. Swings in the economy (both national and local), the availability of property (supply), and the fickle nature of consumer trends can determine if a given neighbourhood is hot or not.

As an expert on your local real estate market, a Royal LePage agent is an excellent place to start understanding the state of your local market. You may also want to consult the Royal LePage Survey of Canadian House Prices. This is a quarterly report geared to help you learn more about housing price trends in your area as well as housing markets across the country.

Here is a quick rundown on how the changing housing market can impact buying and selling behaviours: 

Closing the Purchase

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(306) 694-8082

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1-877-694-8082

Office location

605A Main Street N
Moose Jaw, SK
S6H 0W6

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