Before setting a number, ask your mortgage broker to run the math on how much of a financing gap you could cover if the appraisal comes in under your offer, especially with minimum down payment rules of 5 percent to $500,000 then 10 percent above already limiting how much you can borrow.
A smaller premium backed by strong offer terms, such as a shorter condition period or a possession date that suits the seller, often competes just as well as a larger premium with a financing condition attached, since sellers are weighing certainty alongside price.
Have your agent check whether the listing itself was priced to attract multiple offers before you decide how far above it to go. Get your hand-reviewed valuation from Joel Dyck.