Discussion in 'Reality Check' started by Cooper, Jan 29, 2016.
Neat picture province by province. Van city is scary
You mean Hongcouver?
I'd like to know how they come up with the 'needed income'. I make more than the listed amount needed for Halifax... but I wouldn't look at anything over 225k if I was even in the position to do so in the first place.
I thought as a general rule it was not advisable to mortgage a single family dwelling for more than 4x income or so.
Don't you know you gotta hustle with the jonesz?
I would guess they're coming up its IT by budgeting above and beyond. As in, no sense buying a house to be house poor,
im in the market now and feel the same. just waiting on the right property to pop up.
Meh, it'd be significantly less daunting if I was able to rely on having that stable 2nd income around... regardless my goal is ~ 2 years.
According to this chart....I could afford way more house than I bought! All I would have to do is live off of Kraft Dinner and never leave the house.
Kraft Dinner ain't cheap.
I am assuming that chart is based on NET income?
I used a financial adviser, he told me the mortgage I wanted was reasonable for my income, I went with it and have had no problems.
Ah, good point. I initially thought maybe it was gross...but net would make a bit more sense.
The figure is based on gross income and the listed house prices are averages. I assume it doesn't mean that you can afford an average priced house with the minimum income listed but you can afford a house.
The bank would have approved double what we spent on a house. There was no way I wanted to miss out on everything else in life while being a slave to a mortgage.
"The incomes listed on the graphic are based on a 25-year mortgage fixed at an interest rate of 2.5 per cent for five years. It also takes into account a 20 per cent down payment, as well as heating costs and property taxes."
Essentially how much income you need to be house poor and not be able to afford to maintain or improve your property.
Ever take a look at dropping down to 15 or even 20 years and how little the amount grows? Then again, I am on PEI with the lowest housing costs haha
How little what amount grows? The payment?
Putting 20% down on a 200k house would leave you with a mortgage of 160k. Going from 25 down to 15 years would change the payment (without property tax) from 717 to 1066. That's nearly a 50% increase in the payment amount.
Lol, yeah right. You find me a 200k place for a 717/mth mortgage (+ assuming another 150-200 for property tax) and I'll buy that place... I don't think that exists.
Did you actually...read my post?
Run 160k (200k house with 20% down which the report was based on) 2.5% interest (from report), 5 year term (from report) 25 year amortization (from report) and see what it comes up with.
Also mentioned that the payment was without property tax included.
Yeah... suppose I misread the 200k/160k. 50k-60k interest over the life of a mortgage sounds a lot more realistic than ~15k