Page 7 - Home Buying Guide

How much can you afford?

When shopping for a home, it’s important to know what you can afford. You also need to be aware of
the additional costs associate with purchasing and maintaining a property.

To determine your maximum affordability, lenders take several factors into account, including:

• Household income of the applicants purchasing the house
• Personal monthly expenses of those applicants (car payment, credit expenses, etc.)
• Expenses associate with owning a home (property taxes, condo fees, heating costs)
• Amount of your down payment

Minimum down payment:

The minimum down payment required is determined by the price of the home you want to purchase.

Home price Minimum down payment

$500,000 or less 5%

5% of the first $500,000 + 10% of the
$500,000.01-$999,999
remaining portion

$1,000,000 or more 20%