Before deciding to look for your new home, it is to your advantage to approach your bank or mortgage broker.  Sometimes you can afford a more expensive home than you thought.  On the other hand, you do not want to look at homes that are more than you can comfortably afford.  

It is also wise not to make yourself house poor.  It is nice to be able to go out to dinner occassionally or to some other activity.  Your home loses its appeal if you can never afford to go out. 

If you do not have 65% down on your mortgage, you will have to insure it through either CMHC or Genworth Financial.

CMHC and Genworth Financial's current Mortgage Loan insurance Premium Rates*:

Loan Size

(% of property value) Rate (as a % of loan)

• Up to and including 65% (over 35% down payment) 0.5%
• Up to and including 75% (25% to 34.99% down payment) 0.65%
• Up to and including 80% (20% to 24.99% down payment) 1.00%
• Up to and including 85% (15% to 19.99% down payment) 1.75%
• Up to and including 90% (10% to 14.99% down payment) 2.00%
• Up to and including 95% (5% to 9.99% down payment) 2.75%
• Up to and including 95% Flex Down or Cash Back Equity Owner-Occupancy Program** (5% to 9.99% down payment) 2.90%
• Up to and including 100% (0% to 4.99% down payment)  3.10%

 *An additional 0.2% is added to all mortgages with amortizations of 26 to 30 years. An additional .4% is added to all mortgages with amortizations of 31 to 35 years. An additional .6% is added to all mortgages with amortizations of 36 years or more.