<prompt> Human: Hello PF, My wife and I are about a week away from closing on our first home. Im an engineer making 74k and wife is not working. Wife is pregnant and we are expecting in 4 months. The houses purchase price is 552,500 We are putting 150k down gift from parents Were mortgaging 402k 2.99 fixed for 5 years. The loan is amoritized over 30 years We live in Toronto Bills Car, internet hydro, etc 1500 mo Income is 4500mo Mortgage will be 1700mo and taxes are 420mo We will have 10k left over after close I dont contribute to retirement fund company matches 50 I have 40k in student debt and will have to start making payments in 6 months No credit card debtSo should we have bought the house? and What are some ideas for improvement in our situation. We were thinking that the 10k should be saved for emergency and that I will need to start contributing to my retirement fund per PF FAQWould appreciate any ideas, help, or input.  <response>: Income: 74k. Purchase price: 552,500 Downpayment: 150kThis fails one of my can I afford this tests, but passes the other. 1 is Dont finance more than 3x your income and 2 is Always put down at least 20. Youre financing 5.4x your income 402.5k and putting down 27. I dont contribute to retirement fund company matches 50 I have 40k in student debt and will have to start making payments in 6 monthsThese are major red flags. Not contributing to a retiremnt fund that gets a 50 match is throwing away free money.Adding up what you think your expenses will be 3620 leaves you with only 880 per month! First, what are your student loan payments going to be? Second, youve left things out. No matter how much you plan, you cant know what all of your future expenses are going to be. You need a buffer of some kind.TL;DR So should we have bought the house?NO. 