One of the first questions I get from almost every buyer is some version of “what can we actually afford?” It sounds simple but the answer is almost always more complicated than people expect — and more encouraging too. Head over to my Buyers page to see the full picture of how I help families navigate the purchase process in Waterloo Region.
Here’s an honest breakdown of how to figure out your budget before you start falling in love with houses.
Start with your gross household income
As a general rule, most lenders will approve you for a mortgage that’s roughly 4 to 5 times your gross household income. So if you and your partner bring in $150,000 combined, you’re likely looking somewhere in the $600,000 to $750,000 range — which puts you right in the middle of the Kitchener-Waterloo market.
That said, this number shifts based on your down payment, existing debts, and current interest rates. Which is why talking to a mortgage broker before you start shopping is one of the smartest things you can do.
Your down payment matters more than you think
In Canada, the minimum down payment on a home under $500,000 is 5%. For homes between $500,000 and $999,999 it’s 5% on the first $500,000 and 10% on the remainder. So on a $750,000 home you’d need a minimum of about $50,000 down.
If you’re putting down less than 20% you’ll also pay mortgage default insurance, which gets added to your mortgage. Worth knowing ahead of time so there are no surprises.
Don’t forget closing costs
A lot of buyers focus entirely on the purchase price and forget that closing costs are a real expense on top of that. In Ontario you’ll typically spend between 1.5% and 4% of the purchase price on things like land transfer tax, legal fees, title insurance, and home inspection. On a $750,000 home that could be anywhere from $11,000 to $30,000.
Budget for it early and you won’t be scrambling at the end.
What does $600K to $900K actually get you in KW right now?
In today’s market that range gets you a lot in Kitchener-Waterloo compared to the GTA. You’re looking at detached homes in established move-up neighbourhoods, newer builds in areas like Doon or Huron, and larger townhomes with good school access. It’s a solid range for a growing family with realistic expectations.
The best first step
Before you book a single showing, sit down with a mortgage broker and get a pre-approval. It’s free, it takes about an hour, and it tells you exactly what you’re working with. From there we can build a search around your real budget instead of guessing.
If you want a recommendation for a local mortgage broker I trust, feel free to reach out. I’m happy to connect you with someone who will give you straight answers. And if you’re also planning to sell your current home, visit my Sellers page to understand what that process looks like.
Written by
Jenny Domingos, REALTOR®
Chestnut Park West Realty • Licensed since 2016 • Kitchener-Waterloo Region
Jenny specialises in helping growing families upsize across Kitchener, Waterloo, and Cambridge. As a mom of three and a long-time Waterloo Region resident, she understands the local market — the neighbourhoods, the schools, and what it takes to make a smart move.
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