First Home Buying Readiness Test

Not whether you can afford the deposit, but whether you can afford to own it after moving in.

8 questions
2 min
559 times taken

Most people work out whether they can afford to buy a home. Far fewer work out whether they can afford to own one - maintenance, taxes, insurance, and repairs that arrive uninvited.

This test weighs both, plus the factor that most often turns a purchase into regret: income stability across the life of the loan.

1 How much deposit have you saved? *

20% or more of the price 10% to 20% Less than 10% None yet

2 Have you set aside money for costs beyond the deposit? *

Fees, legal costs, taxes, insurance, and moving.

Yes, budgeted separately Partly Had not thought about it

3 Estimated monthly repayment as a share of household net income? *

Under 25% 25% to 33% 33% to 40% Over 40%

4 Do you have other loan payments running? *

None One, small Several

5 After paying everything, how many months of emergency fund remain? *

6 months or more 3 to 6 months Less than 3 months Nothing, it all went to the deposit

6 How secure is your income over the next five years? *

Very secure Reasonably secure Uncertain

7 How long do you plan to stay in this home? *

Buying then moving soon almost always loses money because of transaction costs.

More than 7 years 4 to 7 years Less than 4 years

8 Have you budgeted for annual maintenance? *

Yes, about 1% of value per year A little, informally Not at all

Free - no signup - instant result

The deposit is not the only upfront cost

Beyond the deposit sit arrangement fees, legal costs, transfer taxes, insurance, and moving. Upfront costs often total five to eight percent of the price, on top of the deposit itself.

The rule that saves buyers

Keep the repayment under 30 percent of net income, and all debt payments combined under 40 percent. Past that line, every small event - a car repair, school fees, a medical bill - converts straight into new debt.

The costs that arrive after you move in

A sensible estimate for annual maintenance is one percent of the property value, and older homes cost more. This is not an optional expense; only its timing is out of your control.

FAQ

What deposit is ideal?

Twenty percent is the common benchmark because it lowers the repayment and often removes extra insurance costs.

Is renting or buying better?

It depends how long you will stay. Under four years, transaction costs often make buying the more expensive option.