How Much Home Can You Really Afford in Mississauga?

Buying a home is an emotional milestone. For many families in Mississauga, it’s the moment they step from dreaming into reality. Yet, underneath that dream there’s a very practical question: how much can you safely afford?

Start With the Numbers That Matter

Banks and mortgage brokers look at two key ratios to determine affordability:

Gross Debt Service (GDS) ratio – the percentage of your gross income that goes toward housing costs (mortgage payment, taxes, heating and half your condo fees). Federal guidelines suggest this should stay below 39 % of your incomecanada.ca.
Total Debt Service (TDS) ratio – the percentage of your income that covers all debts (housing plus credit cards, car loans, student loans). The recommended cap is 44 %canada.ca.

Think of these ratios as the guardrails on your homeownership journey. They keep you from racing into a mortgage that will strain your budget when unexpected expenses appear. Mortgage brokers at OptimalFinance.ca use sophisticated tools to calculate your ratios, taking into account your income, debt and future goals.

The 28/36 Rule – A Simple Rule of Thumb

Another way to approach affordability is the 28/36 rule: no more than 28 % of your gross income toward housing and 36 % toward total debt. This guideline isn’t a law; it’s a safety net. When you stay within it, you leave room for emergencies, vacations and that new washer when the old one suddenly quits.

Why Pre‑Approval Is Your Best Friend

Pre‑approval isn’t just about getting a piece of paper. It’s about clarity and confidence. A pre‑approval looks at your verified income, employment history and credit to give you a firm budget—and often locks in an interest rate for up to 120 days. In a competitive market like Mississauga, being pre‑approved signals to sellers that you’re serious and ready to move forward.

Budgeting for the Whole Picture

Beyond your mortgage payment, remember to include:

Utility bills and maintenance – old homes may have higher heating costs; newer builds may have higher condo fees.
Home insurance – mandatory for your mortgage and varies by property type.
Emergency savings – roofs leak and furnaces break. A small cushion prevents panic.
Closing costs – plan on 3–4 % of the purchase price for legal fees, land transfer tax and other closing costs.

The Emotional Side of Affordability

Money is only part of the story. If your commute steals time from family dinners or your mortgage eats into your travel dreams, even an “affordable” house can feel expensive. As Brené Brown reminds us, vulnerability is part of the process. Talk openly with your family and your mortgage broker about what homeownership means to you.

Ready to Take the Next Step?

The right mortgage strategy can reduce stress, lower interest costs, and create flexibility for the future—but only if it’s reviewed regularly.

If you’re unsure whether your current mortgage still fits your goals, or you’re planning a purchase or refinance, now is the right time to get clarity.

Let’s review your situation and map out smart next steps—no obligation, no guesswork.
You can reach me directly, book a call, or send a quick message:

Lorne Andrews
Mortgage Broker | Dominion Lending Centres Expert Financial
???? Mississauga & Greater Toronto Area
???? 416-276-6445
???? lorne@expertfinancial.ca

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