Let's talk about the total monthly cost first.
Your total monthly cost is the sum of all monthly fees associated with the on-going home ownership cost.
- Mortgage payments
- Property tax
- Utilities such Heat, Hydro, Water
- Condo maintenance fees
- Home insurance fees
- Internet & Cable (if you are not using Netflix)
If you are receiving rental income, say you are renting out your basement, you can subtract your total cost by the rental amount. If you receive more rental income than your monthly cost, the you actually have a negative monthly (positive cash flow).
You can use the Canadian Mortgage App to determine your total monthly cost. This number is displayed on the top right corner of the app in super large font.
Given the small space on the device, the app combines the utilities and fees into one, in later versions, we may add the ability to expand that so you can add individual items such heat, hydro, water, etc.
So now the question is, can you afford it. That's really up to you. Enter all the values and judge for yourself if this number is within your budget. Generally in Canada, it is recommended that you only use 32%-39% of your gross annual salary towards home costs.
To find out the maximum loan you can afford based on some standard ratios (aka GDS/TDS) use the Maximum Loan Estimator from the side menu.
if your mortgage payment frequency is set to bi-weekly (which is 26 payments in a year), the total monthly cost value is calculated by taking the total annual mortgage payments divided by 12.