Between paying living expenses, mortgage instalments and taxes – not to mention saving for children’s education and retirement – it’s not easy for families to get ahead.

But it is possible, given the right advice.  A recent study found that “advised households” working with financial advisers for four to six years, accumulate 1.6 times more assets than “non-advised households”.  The same study also found that families with advice have 4.2 times the median assets of those without.

As a home is usually a family’s largest asset it follows that getting professional advice can maximize it’s value.

Deciding to buy a home should therefore trigger a broader financial planning discussion.  

When clients come to me for a mortgage, we first discuss household budget and cash flow because we all know that what the bank says you can “afford” may not really be realistic in terms of your lifestyle.

A comprehensive financial plan also includes considering the realities of owning versus renting.  There are additional costs of ownership that need to be considered – swapping a $1,000 rent payment for a $1,000 mortgage payment won’t be a wash.  If you add the mortgage to the property taxes, condo fees (if they apply) and maintenance, is it still comfortably affordable?

It is important to also think about renewal time and, if rates increase, will the mortgage payment still be comfortable.

For a copy of the household budget sheet I review with clients, check out my website to get a copy of my Home Buyer’s Guide.

Also, contact me if you are want to understand what you can comfortable afford!