I’m often asked, ‘How much can we afford’.

Most experts will simply take your gross income, then multiply it by the allowable debt servicing ratios and presto, that’s your magic affordability index.

It’s purely based on a mathematical equation.

Instead, I highly recommend this…

For one month, track EVERYTHING you spend.


At the end of the month you’ll have a bunch of data, you’ll see what you’ve spent. You put your rent in there, your car expenses, everything that’s static and doesn’t change, along with all your other miscellaneous spending.

Add that all up and subtract it from your income.

Now hopefully your income is a bigger number. Assuming it is, you look at that surplus number and decide what you can afford to spend on home ownership.

Now that you’ve determined that affordable monthly payment figure, try living with that expense the following month.

If it feels comfortable, our mortgage affordability tool will now translate that data into your mortgage affordability figure.

Now you’ve REALLY determined your monthly affordability figure, which is far more important than the total mortgage amount anyway.

Working backwards like this is a much better way of determining your personal affordability.

To help you do this, we’ve designed a customizable mortgage affordability spread sheet that allows you to personally input all your data along with your income, then it translates that data into your affordability figure.

If you or someone you care about would like a copy of this great mortgage affordability tool, simply email me at mark at notapennydown.com

Mark Fidgett is a Vancouver mortgage broker and the driver behind www.NotaPennyDown.com

Your Vancouver Mortgage Broker For Life


P.S. Who’s the next person you know who wants to save thousands off their mortgage? Be sure to give me a call so we can help them! 604-273-2002

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