How Your Daily Drive Time Can Factor Into Your Mortgage

Thursday Mar 04th, 2021


It is easy to overlook some of the things that can affect your budget and purchasing power when youre considering a home, and one of the biggest factors that buyers overlook is the cost of their daily commute.

Weve all heard that real estate is all about location, location, location,” and properties in more desirable locations typically come with a higher price tag than similar properties that arent in a hot neighbourhood.


Yet the overall cost of living for choosing one location over another might be negligible when you factor in the commuting costs that are required—gas, vehicle maintenance, insurance—if you purchase a home that is significantly further from your workplace. If your mortgage is $200 less per month, but youre spending an extra $200 in commuting costs, are you really saving money?


Commuting costs arent just about the disposable income left in your bank account, either. It can even affect how much money you can borrow. If youre a long-distance commuter, a  mortgage broker may factor your travel costs into your debt-to-income ratio.


Aside from how commuting affects your purchasing power or disposable income, there is also the question of how it affects your quality of life—no one wants to spend hours a week just getting to and from work.


The real estate market varies greatly from location to location, so the best way to get a complete picture of your purchasing power—and all the factors that go into your home budget—is to speak to a trusted real estate professional.

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