Bank Approved vs Lifestyle Affordable: How Much House Can You REALLY Afford in Canada?

📊 FREE CANADA HOME BUYING CALCULATOR: 👉https://docs.google.com/spreadsheets/... The calculator includes: • True cost of home ownership • Rent vs buy + invest comparison • Bank-style home affordability • Lifestyle-based home affordability • Mortgage, property tax, maintenance, utilities and other ownership costs 🏠 HOME OWNERSHIP SERIES Part 1 – The TRUE Cost of Owning a House in Canada 👉    • The True Cost of Owning a House in Canada....   Part 2 – Buy a House or Rent & Invest Instead? 👉    • Buy a House or Rent & Invest in Canada? I ...   Part 3 – How Much House Can You REALLY Afford? You're watching it. 📌 Description: How much house can you actually afford in Canada — not just how much the bank will approve? In this video, we calculate both. Using a household earning $180,000/year, we first estimate how a Canadian lender might calculate home affordability using income, existing debt, GDS/TDS limits and the mortgage stress test. Our example produces a bank-style maximum home price of approximately $765,000. Then we calculate affordability completely differently. Instead of starting with gross income, we start with actual take-home income and protect money for groceries, transportation, investing, travel, existing debt, emergencies and some breathing room. Under those assumptions, the comfortable lifestyle-based home price falls to approximately $575,000. That's a difference of roughly $190,000. The point isn't that everyone earning the same income should buy a $575K house. Your expenses, savings goals, down payment, mortgage rate and lifestyle will be different. That's why I've included the spreadsheet used in this video so you can enter your own numbers. Overthink It is about breaking down the big financial decisions we make in Canada — cars, houses, debt, investing and everything in between — so we can understand what the numbers actually mean before making the decision. If that's useful to you, consider subscribing. Disclaimer: This video and calculator are for educational purposes only and are not financial, mortgage, tax or investment advice. Mortgage qualification depends on the lender, borrower and current regulations. Verify your situation with the appropriate professional before making financial decisions. #HomeAffordability #CanadaRealEstate #FirstTimeHomeBuyer