Methodology & editorial standards
Reality Check publishes calculators and guides that people use to make real money decisions. This page documents where our numbers come from, how our guides are written and reviewed, and how we handle corrections. If a page on the site doesn't match what's here, this page wins — please let us know.
The standards our verdicts use
Every "comfortable / stretch / risky" verdict in the tool is derived from long-established personal-finance benchmarks, not from proprietary scoring. Specifically:
- 28/36 rule — the mortgage-underwriting ratio used by most lenders: housing under 28% of gross income, total debt under 36%.
- 30% rent-to-income guideline — the widely cited affordability threshold for all-in housing.
- 4% safe withdrawal rate — from the Trinity study (Cooley, Hubbard, Walz), updated regularly since 1998.
- 3–6 month emergency fund — the range endorsed by the CFP Board and most consumer finance regulators.
- 10% monthly surplus buffer — the threshold below which single expense shocks (car repair, dentist) typically become debt events.
Regional default data
The tool pre-fills property tax rates, insurance costs, daycare rates, and rents based on the city and country you select. Those defaults are estimates drawn from public sources — municipal tax pages, CMHC and Zillow market reports, BLS and StatCan utility surveys, and provincial or state daycare association reports. They're rounded, illustrative, and reviewed quarterly. Every number in the tool is editable — if you have a more accurate figure for your situation, use it.
Mortgage math
We use the standard amortizing-loan formula. Canadian mortgages are compounded semi-annually and converted to an equivalent monthly rate before the payment is computed; US mortgages compound monthly. CMHC insurance is applied to insured Canadian mortgages above 80% LTV using the CMHC-published premium schedule; US PMI is estimated at 0.75% of the loan annually for loans above 80% LTV. Minimum down payments follow federal rules in each country.
How guides are written
Every article in The Guide is written in-house, not syndicated, sponsored, or AI-generated as final copy. We start from primary sources — regulator documents, academic studies, official statistical releases — and translate the math into plain English. Articles do not contain affiliate links. We do not accept payment to link to specific products, banks, brokers, or financial-service providers.
Review and update cadence
- Regional cost defaults: reviewed quarterly.
- Tax brackets and government benefit amounts: reviewed after every federal budget in each country.
- Guide articles: reviewed annually, or immediately when a cited rule or rate changes.
Corrections policy
If we get something wrong, we fix it and note the change. Substantive corrections (wrong numbers, outdated regulations, misapplied rules) are made as soon as we can verify the correct information; typos and stylistic fixes are made silently. To report an error, email hello@myrealitycheck.ca.
Not financial advice
Everything on this site is educational and general in nature. It does not take into account your specific circumstances and is not a substitute for advice from a qualified financial, tax, legal, or investment professional. Do not make a real financial decision based solely on a Reality Check output.
Advertising
The site may display third-party advertising (currently via Google AdSense). Ad placements are clearly labeled and never influence the editorial content, the underlying calculations, or which standards the tool uses. We do not accept ads for products we would not recommend a friend look at.