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Before you sign your mortgage contract, it’s important to be absolutely confident that you can afford the cost of home ownership. Whether interest rates rise or heating costs go through the roof, you need to be sure that you can make your monthly payments.

Keep reading for 7 questions you can ask yourself to make sure you can afford that mortgage!

1. What are the annual property taxes?

When calculating the cost of a home, take into account the annual property taxes. Use the previous year’s tax rate as a gauge and divide it by 12 to get a month-by-month breakdown.

2. How much will heat and electricity cost?

Ask the current owners or the electricity company for a breakdown of the previous two years’ energy costs. Look for spikes and find an average rate that covers both winter and summer months. Use this as a measurement to come up with a monthly estimate of your heat and hydro bills.

3. Have you budgeted for home maintenance?

When budgeting for home maintenance, take into consideration the age of the home and any major amenities like the roof, flooring, furnace and wiring.

If your home is up-to-date, you can typically get away with putting aside $50-$100 per month for home repairs. However, if you’re buying an older home that will need repairs, you’re going to need to budget for that.

4. How much are the closing costs?

When drafting up a budget for purchasing a new home, remember to include the closing costs. These include realtor fees, lender fees, mortgage insurance fees and all sorts of other hidden costs associated with a home purchase.

5. Have you budgeted for inspections and appraisals?

Before you buy a home, you’ll need to have it inspected and possibly appraised by an independent inspector. Each time you do this will cost you several hundred dollars. Before you start house hunting, make sure you have the budget to cover a proper home inspection.

6. How much will house insurance cost?

When you own a home, you have to insure it against theft, fire, flood and other catastrophes. Most financial institutions won’t give you a mortgage without home insurance firmly in place. So when you’re drawing up your expected monthly budget, remember to include the cost of thorough homeowner’s insurance.

7. Can you afford a higher interest rate?

If you’re signing a variable rate or adjustable rate mortgage (ARM), make sure that you’ll still be able to afford the payments if interest rates go up by a few percentage points. You need to be ready for market fluctuations, so if you’re stretched too thin at a low rate, you won’t be prepared for a higher one.