<prompt> Human: Hi all! My wife and I and 1 year old daughter are considering a new condo and I thought Id see if reddit thinks we can afford it. The home is in Toronto. The condo is listed for 898k with a 1015 condo fee which includes everything except Internet and TV. I make 120k, and my wife makes 95k. We have a home with 250k equity in it that we would put down. I have an additional 75k in savings. I have a car with 20k owing, payments of 686 monthly. My wifes car has 21k owing with 393 monthly monthly payment. No other debts.Im a bit scared at the size of mortgage but think it should be manageable. If we were tight I could pay my car off to free up almost 700mo.Thoughts?  <response>: There is a lot of the picture of your finances that is missing here. What other big costs do you have? Childcare, for an infant in Toronto is probably 1500Month? Whats your take home? Without factoring in deductions, Im guessing about 130k? Fuel for cars? Insurance for cars, condo? As well as the other real estate expenses, lawyer fees, transfer taxes, GST if new build, etc. Property tax. Parking? What is your current mortgage payment? If you put 275,000 down Some of your 75K will need to go towards lawyer fees, transfer tax 3-4 I believe? real estate cost, moving etc that will leave you with a mortgage of 623,000. At 3, for 25 years, a monthly payment of 2948. Add up all your listed costs, and approx 1500 for childcare and 500 for property tax, and you have about 3700 left over this doesnt factor in gas, insurance, groceryies, entertainment etc. There is also the question of do you want to afford it. Right now you have a nice income that you are able to save up 75,000. With a bigger mortgage, that may not be possible to make that savings. How secure are your jobs. The loss of one of those incomes would probably mean disaster with that size of a mortgage. 3700 month is a lot of money for most people Its probably more than a lot of families gross. I would love to have 3700 left over after major expenses!. But is it for you. Especially after you take out the other expenses that you havent listed: insurance, 100, Car insurance 200, Baby crap 500, Fuel 150, Entertainment 400, groceries 1000, Vacation ??. You will have to fill in your actual values here. You will also probably want to start thinking about and education fund RESP for your daughter.Look at your bankCC statements for the last 6 months and see what you spent, then average that out per month. That should tell you if you can afford the 3000 a month mortgage. It may be a bit off as you have a new baby, so one of you may have been off for matpat leave, so try to factor that in. If those numbers dont work, you will have to see what you were spending on that you are willing to give up, if anything. It may only be adding to savings that will be affected. Or maybe something else that you need, want to do. Check out ratehub.ca. They have an affordability calculator, a mortgage payment calculator, as well as list competitive rates from banks and brokers. You can play around with the calculators to change amortization period, down payments etc and check the results. What is the reason to wanting to move? You are moving from a house? It can be hard to downsize from a house to condo. Are you moving closer to work? Than maybe you can get rid of one of your cars. TL;DR Yes, you can afford it, but need more info on whether you would have to change your lifestyle. 