What can I afford for a mortgage?

I wish I could earn a loonie for every time I heard that question. What can we afford? I'll let you know that I never answer that question... my question in return is 'What can you afford to put towards a mortgage?' The young couple in front of me looks and says 'we don't know'. Well you can go to any mortgage calculator, punch in what you earn and it will tell you the amount your mortgage payment should not go over. BUT if you are a couple that eat out frequently, participate at the gym, and go out two nights each weekend - your budget for mortgage may be different then a couple earning the same amount but they eat out once a month and they do not have any other debt. I take a look at the BIG picture. After a long discussion we come to a mortgage amount and a monthly payment. If you are currently renting and are looking to purchase your first home, I recommend putting the difference between a mortgage and rent in to a savings account, PLUS property taxes, plus heat if you don't pay it now. Then you will know what it feels like to live with a mortgage... and you can decide if you want to have that payment for 25 years.