Can I really afford this property?

My wife and I had an accepted offer on a townhouse in Vancouver for $985K. We have $340k for a downpayment and have put aside another $20k for closing costs. The interest rate on our mortgage is 5.09% for 3 years which works out to about $3800 a month. On top of that have accounted for $770 a month for property tax, strata (pretty new so low fees), heating and insurance for a total monthly housing cost of $4570.

Combined we make $200k, with bonuses about $220 but not guaranteed. So our housing costs would be about 27% of our gross income and about 42% of our after tax income not accounting for RRSP deduction. We will have about $50k remaining as an emergency fund in RRSPs and other accounts after the downpayment and closing costs.

It's difficult to determine our monthly spending as it tends to fluctuate but is generally averaging about $3k a month on everything except rent. The rest has been going to TFSA and RRSP after rent and am wanting to meet our minimum RRSP contributions going forward for employer match at 5%.

From my math it seems like we can afford it but like I'm assuming most first time homebuyers feel I am having second thoughts. Have I missed anything in my math and is this something we can truly afford? We are wanting to try for kids in the next few years and not sure if this descission will hamper our ability to pay for childcare.

I appreciate everyone's input as I'm not always the most financially savvy.