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Rob Carrick’s Real Life Ratio is a guide to how what mortgage you can afford – and still meet these other important financial obligations.

Broker Paul Siksna puts up a ‘for sale’ sign before an open house in downtown Toronto.The Globe and Mail

The Real Life Ratio is an answer to the self-interested housing affordability calculators offered by banks and other lenders, as well as the real estate industry. Their tools look at how much mortgage you can afford without posing a significant default risk. There’s zero consideration of how well you’ll be able to juggle your housing costs, plus expenses like daycare, emergency funds and saving for retirement or your children’s education.

The Real Life Ratio is a guide to how much house you can afford – and still meet these other important financial obligations. Whether you’re looking for a home or you already own, the RLR will show you where you really stand.

The REAL LIFE Ratio

Income

$$

Housing

$
$
$
$$
$
$

Cars and other debts

$
$
$
$

Daycare

$

Long-term savings (eg. retirement, children's education, etc.)

$

Home maintenance and upkeep

$

Your Real Life Ratio is...

75 or less: You can do this
76 - 80: Proceed with caution
81 - 85: Go back and see where you can cut costs
86+: Financial stress overload

What it means...

The results presented are for illustrative purposes only. The calculations are estimates based on the accuracy and completeness of the information you provide.

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