Do NOT Buy a Home in 2024 Without Doing These 4 Things

don't buy a home in 2024 without doing these 4 things

Do NOT Buy a Home in 2024... Until You've Done These 4 Things.

So, you just got your pre-approval from the lender and you’re ready to start house hunting. 


While your pre-approval is a key compotent to the home buying process, it only tells you what you CAN afford. But it doesn’t factor into account what type of lifestyle you’d like to continue to live while you’re paying that mortgage.

So before you go house hunting and max out your pre-approval, take a few minutes to complete these 4 simple steps to set Your Personal Mortgage Budget.


To do this, you will need your last 2-3 months of pay stubs and credit/debit statements for everyone who will be helping to pay the mortgage.



It’s important to know and calculate what your NET monthly income is. This is the amount that you actually end up with after deductions like income tax, RRSP deductions, etc.



Using your credit and debit transactions, calculate the monthly average of all of your FIXED expenses. 

These are things that must be paid each month; ie. car insurance, loan payments, utilities, etc.

Now deduct your average monthly fixed expenses from your net take-home income.



Again, using your credit and debit transactions, calculate the monthly average of all of your VARIABLE expenses. 

This is the amount your spend each month on other things; ie. entertainment, shopping, groceries, self-care, etc.

Now deduct that from your new subtotal.



Okay so here is the REALLY important step that most lenders miss.

Think about how much you would need to save each month for other long-term goals you have above and beyond becoming a home owner. 

These are things like; ie. retirement (if you don’t have an RRSP through your employer), weddings, babies, travel, renovations, etc.

Now subtract that from your subtotal.

And there you have it!!

Your new total will allow you to get into the housing market and help you achieve your goal of becoming a home owner, but it will also allow you to continue to live the kind of life you’ve always envisioned. Not to mention help you get a true picture of where you are spending your money and areas where you could probably cut back.

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