Here are some frequently asked questions that any first-time (or repeat) buyer should be asking: How much house should I buy or how much can I afford? The answer to this has a lot to do with your income and the amount of your debt load. As a rough rule of thumb, most home buyers purchase houses that cost between 1 1/2 and 2 1/2 times their annual income. For example, a home buyer earning $40,000 per year would buy houses costing between $60,000 and $100,000. There is, however, a degree of variation due to the individual market prices of the area in which you are interested. In some areas, there may not be houses available within that range, so you may need to spend a bit more. In general, however, your monthly mortgage payment cannot exceed approximately 28%-29% of your gross monthly income. Your total debt payments (car payments, credit card payments, etc. plus the monthly mortgage amount) cannot exceed approximately 36%-40% of your gross monthly income. These ratios will depend on the type of mortgage for which you are applying. For more information on mortgages click here. Do I really need to use an Agent to buy a house? No. Should you use an Agent to buy a house? Probably, for two reasons. First, the buyer does not pay a commission, so the services of an Agent working for you are paid for by the seller. Second, without an Agent, you may be missing valuable representation of your interests. See the Disclosure page for more information. Many visitors to this Web Site skip the information on the Disclosure page and may be leaving themselves unrepresented. How do I know if I am getting a good deal on a mortgage? In a word: Compare. There is a good deal of variation in the mortgage market, not only from week to week, but from lender to lender. Every major bank and mortgage company has a site on the Web listing their rates. Check them. Should I spend the money to have a home inspection? Absolutely. The $200 to $500 that a professional home inspection costs could be the best money you ever spend on your house. Not only does the home inspection seek out any defects (and gives you some peace of mind), the home inspector will often give you tips on maintaining and repairing your house. See the section on Home Inspections for tips on what to look for and how to choose a home inspector. Click here to view: Reality And Wish Lists Click here to view: Ontario New Home Warranty Program Click here to view: Watch Out For Real Estate Scams Click here to view: Tips On Finding The Right House