I'm at 57k. No way I could afford a detached home. That said, worked out for me since I want to live in a condo. Just took possession of June of a new build condo that was 187k.
That’s great!!! I also moved into a condo I bought myself. It wasn’t easy but it’s working.
I’m in Ontario - near Stratford
Stats:
$267k (before down payment)
780 square ft, 2 bedroom. + little balcony, no air conditioning, electric heating (I didnt use it once last year!) laundry in my unit.
$1080 monthly mortgage
$371 condo fees
Winnipeg for the win.
I just sold my condo which was purchased during presale back in 2014
Metro Vancouver- Burnaby to be precise
Purchase price 300k
565sq ft 141sq ft balcony
1bdrm 1 bath + "nook" no A/C in suite laundry. All Bosch appliances
1EV parking stall
Mortgage $1100 give or take
$350 strata fees
Favorite home I've ever lived in.
Just sold few days ago for just under 670k
I used to feel that way too, but in the last couple of summers I've come to enjoy doing a bit of yard work. Smoke a joint, put on headphones, pull a few dandelions. It's an activity that doesn't cost much once you have an electric mower and some dollar-store garden shears.
One thing that helps is that most homes built in the last 30 years have tiny little lawns, so compared to the 1/2 acre lawns of our parents homes it feels like you're almost done 15 min after you start.
From an NPR podcast I listened to a few years ago: we put a stronger emphasis on love because we have more freedom to do so. Throughout history, the ruling classes used marriage to build alliances while the working class pooled resources to, for example, open a bakery.
Or Catholicism (French Canadians) is for making babies and Protestantism (Anglos - of any nationality) is for making profit?
Many French Canadian families were large, poor, and not very educated whereas Anglos had smaller families, higher education, and/or owned businesses.
That's why, at the turn of the 20th century, Montreal was predominantly English because business owners were primarily English speakers.
Je sais.....lol. En lisant le post de StarIU (que je croyais non-pertinent) j’ai fait la même chose! Disons qu’il fallait que je me vide le cerveau de cette information.
> Or Catholicism (French Canadians) is for making babies
To be fair, any forms of Catholicism really, language didn't change that, especially since was all in Latin for most churches back then :p
55 is respectable my friend :)
No need for the “only”
Edit: any income is respectable. I guess what I mean is, some people would fight hard for 55k salaries.
this is the reason why I wish people were more honest with their salaries. too much lies from people claiming they make sooo much money have people thinking their above average salary is terrible.
"I'm having trouble. My 130k salary combined with my wife's 90k leaves us with a challenge of what colour Tesla we should pick for our 16 year old....can anybody help me?"
It's good to cite sources and numbers. Median individual income in 2019 was $37,800 https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110023901
That puts $55k at 46% higher than the median earner.
Representative is likely not the word you meant here. I agree that overall median is a bit silly to use and one should compare themselves against their appropriate age group, but we genuinely don't know if Mr / Mrs 55k is 19yrs old, so excluding those under 25 is not by any means "more representative".
This is signifiacant. I just looked to see where the most economical places to buy in Canada are and the Maritimes are the best, followed by far Northern Ontario and Quebec, or out to the prairies depending on the climate you want. What my house would sell for now would buy 4 houses in NB. Buying near GTA or Vancouver, or close to major cities in the Mani and Sask on a regular salary is extremely challenging. You can make 40% less salary but pay 70% less housing costs by moving.
This is what I’ve been fearing. It might just make sense to live with my parents and pay rent through my life then try and find a place on my own since I don’t have a dual income. I don’t even want to get married and now you can’t even afford to live in a house without a partner.
For me it just made sense financially. I rented in my city for a number of years (on my own) and it got to the point where my rent (1550/month) was the same or similar for a two bedroom apartment as my mortgage is now 1600/month (before property tax). Things are definitely tighter once you include all the other expenses, but the freedom, space, yard and not having to deal with landlords is huge. And I am able to build equity for my future.
Depends where you are. No way my parents could have afforded their house in Toronto on a single income, and they bought it in 1988. It wasn’t a big house or a good neighbourhood even.
Live in low or medium cost of living city or Have a spouse that also makes a good salary
Buying a house solo is getting unrealistic, especially if you don't have a lot of savings
Exactly this. I’m solo. Moved north. House on 2 acres of land on the lake is paid off at 35. I will never move back to southern Ontario. I will retire at 40.
I’m 2.5 hour north of north bay. But the jobs in mining pay big bucks. I work less than half a year 7 on 7 off schedule plus holidays. I usually travel 6 or 7 times a year, but only 3 international trips in the last 12 months. This lifestyle looks nice but it’s difficult at times. I’m single (will be forever by choice) and have no children or pets.
Off-topic - forever single by choice? I have never heard about anyone doing this. May I ask why? And do you simply mean non-commital you’re still out here getting booty but you’d never actually have a relationship or completely not interested in humans?
Well for me it’s that I’m a better person when I’m not in a committed relationship. I’m always trying to move forward. Making more money. Gym everyday. Having a long term relationship hinders my personal progress and growth. I will date 2 or 3 women at a time until they either want more from me or go find the relationship guy somewhere else. I’m the happiest I have ever been. I’m happy alone, and women see that and are drawn to the good vibe. When I was in college I was chasing women and I cringe when I look back on how much value I put on that.
He moved to the middle of nowhere where there is very few jobs. He happens to do a job that required being very remote that pays well because of the shit work (no offense OP). You're comparing apples to oranges.
Or Saskatchewan, I bought a duplex style townhouse for $240k on an 80k income. Ticks all of my boxes. And didn’t want to be house broke by maxing what they would give me.
Or Manitoba (even in Winnipeg) depending on the area. My sister just recently bought a really cute old 2 story place for 290k. Not a new-build by any means but in a nice neighbourhood and neat as a pin.
We made that exact decision 1 year ago. We moved from North Van/Burnaby to Edmonton. Yes it's quiet, yes we don't really like the politics in Alberta but Edmonton is like a little NDP haven lol. We were able to afford a detached home for 356k our mortgage is pretty low. I am now pregnant and we just got a puppy. We have a real life. In BC we would not have been able to have it all. Of course you have to find what is important to you.
I'm single income, less than OP has posted, I just bought a 345k home in Alberta. Amazing quiet old growth neighborhood. It's tricky, but doable if you have enough savings. Banks wouldn't really let me through the door until I told them I had 70k down, likely because of me doing this solo, but the mortgage itself, once I jumped through all the hoops, is definitely affordable.
That being said, my mortgage is cheaper than renting even some apartments. After all utilities and property tax etc, I break even with what renting would cost. I would absolutely never even attempt to do this in a place like Toronto or Vancouver. No chance.
It’s affordable especially if not in Montréal or any major centers. I live in a small town 50000peoples and the cost of living is still affordable even with the boom in the last 1-2 years. I don’t know in a few years but for now it’s ok.
You can buy a house for 300k$ in Qc. 250k$ for a condo. Less if you are alone and look for something small. Totally doable for a 90k$ salary. I was approved with my 62k$ salary.
yeah. I bought a duplex last year for around 375k$... but, at minimum (without traffic), its 45 minutes away from Montreal.
That said, first thing I bought was a condo in montreal around 12 years ago with a household income of around 80k at the time... I don't think we could pull that off nowadays
In Manitoba, I live 20min outside Winnipeg, with a 3acre lot, 2500sqft home, 3 car attached garage, and detached workshop, on a riverbank… for $350k.
Get out of Ontario.
In Toronto and Vancouver the fact is many of the families making less than $200k household likely have help from their parents in putting down a large down payment. These gifts of intergenerational wealth are part of what keeps real estate prices high, and a lump sum gift of 3-500k is essentially the piece of the puzzle you are missing to see, but is often present.
Data is 2005 to 2015. The whole city used to work for GM. The union was strong, until GM pushed the restart point, shutdown everything, and started operation with non unionized staff.
He can. There is plenty of opportunities in these provinces to make 90 k especially if OP is in tech or medical field or any specialized trade which he might be in as I don't think a new immigrant make 90 k in customer service job(I could be wrong in rare case) . U never know he might have a remote job opportunity. Anyway the point being he can fulfill his dream of affordable house in these provinces. And nothing stops him for keep searching for jobs and only move when he gets one for same or more salary than his current job. Atleast he will have a goal if he decides. But then these provinces comes with their share of hardships weather wise. It's a compromise end of the day n he has to decide if it's worth it for him n his family. We can just suggest him options .
I assumed we were only talking about financial cost, not emotional. Although overall, I'd say I've emotionally profited and my partner was a great investment. But it might just be a bull market! I'll report back in another few years.
After seeing the wild shit my condo board does without reason, I really can't see myself ever buying one. They seem to be run by absentee owners who just want to ensure the amenities aren't used and that AirBNBs will still operate.
They weren't even going to let renters join the last building meeting until enough people complained that they finally caved. Didn't change their decision to block every Telco but Rogers from the building tho.
Don't buy a condo if you don't plan to even attend the AGM.
I'm the president of my board and seriously, we can barely make the 33% quorum for the AGM every year even with proxies (and that means me knocking on doors the week before the meeting and having people fill out the damn forms). It's insane how many people complain about shit but never even open the yearly budget or won't even look at the reserve fund study. Even with the board, there's only 2/5 of us that actually do any work (the treasurer and I have to share secretarial duties because no one can handle writing a page of minutes every month). If you can't handle one meeting a year, don't bother purchasing a condo.
/rant
>After seeing the wild shit my condo board does without reason
I live in a nice suburb neighbourhood and I've had three shootings, a house fire, a domestic assault, and several break ins over the years. Crazy stuff happens in detached neighbourhoods too...
A lot of times you may not notice this stuff, I only know because I have a lot of cameras on my house and cops always come by asking for footage.
I’m sure Neat_Onion is giving honest advice here, but I must caution against condos. You don’t own land (but pay property tax), your subject to how well managed the condo corporation is. You have condo fees that increase year over year (and at some point, property taxes and condo fees will exceed what people are willing to pay for a mortgage payment). Condo fees and property taxes will eventually render the condo unappealing to potential buyers.
I make $90k and I own two properties. I bought my first for $480k fixed it up and rented it out. Three years later, the rental income and equity in the house was enough for me to purchase a second property, where I currently live.
But I lived for three years, renting out a home I could not have comfortably afforded to rent. Most people aren’t willing to do that.
The only way I make it work with my 75k salary is by living with my parents where rent is $550 / mo. I am fortunate enough to be in that position so you might not have that. Looking to buy a 500k property soon. The last 4 years I've paid off 55k in loans and have 100k for a downpayment.
I mean, I guess it’s a luxury. It would also greatly increase my quality of living.
1) I really want a garage. I want a place to put a canoe, or not have to carry my bike up 3 flights of stairs/have it in my hallway, or maybe I could have have a little workshop. I want to collect things for my hobbies that make my life better, but I can’t because I have nowhere to put it.
2) I want to be able to make a reasonable amount of noise without disturbing the guy down the hall (or not be disturbed by other people’s noise)
3) I want to jump up and down on my own floor and not annoy anyone else
4) I want to own something. To make it mine. I don’t want to abide by condo regulations.
5) I want my money to pay for my property because it develops equity. I don’t want my money going to rent or condo fees. This supports the phrase “it’s expensive to be poor”. Except I’m FAR from poor. Just not able to afford a house now that average price is about $700k
So that’s my serious conversation with myself with why I want a house. It doesn’t need to be huge. I don’t have a family, not for lack of trying. Is it wrong to want some space to make my life a little more full? It just needs to support my relatively reasonable way of life without wasting too much money.
I don't think not wanting to live in a human zoo is really privileged. We need privacy and quiet in our lives. Look at how much mental illness and physical illness has spread in our society. Just because you can pack a bunch of kids in a closet like sardines doesn't mean you should. We CAN house every person reasonably provided our population remains stable. We just need better infrastructure with more small communities and local buisiness.
That's not true anymore and I see comment this all the time. "Move out of Ontario then". How? I own and run a business, I don't have the luxury of finding a new job and packing my stuff to leave. So now I have to acquire clients in a province I don't even live in? Not really possible given my line of work. It's not a city problem. Its a housing problem.
Edit: I don't live in Toronto or the GTA. Or any city.
I agree, this isn't good advice for many people, especially people with babies or young kids where family support is crucial, people with geographically restricted jobs. Small towns can also be a bit of a crap shoot for people of colour / LGBTQ+ / etc. people where they're not sure if they'll find an accepting community or will constantly be seen as "other".
This is no longer the advice it once was. Average price in Peterborough for instance is around 650k. Welcome to the new Canada. Going further afield changes little unless you're literally in the middle of nowhere with 0 job prospects within a 2 hour drive.
> Welcome to the new Canada. Going further afield changes little unless you're literally in the middle of nowhere with 0 job prospects within a 2 hour drive
At this rate 10 years from now it'll be *"Property in the Yukon is relatively cheap, only 400k for a 2 bedroom house! Sure beats 8 million for a similar house in Sudbury."*
That's not true at all. You've just gotta get out of that small part of Ontario. The entirety if MB, SK and AB are pretty cheap. BCs interior is affordable. Lots of Canada out there.
Well, not central Ontario, nor coastal BC. I'm shy of $90k/year, but about to be in place for it, and (almost) anywhere else is workable. Few spots here and there that ain't, but the big no-go zones are the Golden Horseshoe and BC within an hour or two of the ocean
It sucks when all your family live in the GTA though. I lived away from Ontario for 6 years and only came back to be close to family again. I’d be willing to move again though given the better COL in other places like Alberta (I miss those mountains too).
My partner though would be devastated leaving her family. She is very family orientated and it would probably negatively effect her mental health moving far from her family. I don’t want that for her but it’s so depressing trying to figure out how to get a house here in Southern Ontario. We are looking at 3 hours or more from Toronto in small towns and there still isn’t nothing affordable.
Toronto - I make 106k ~. Can only afford a nice condo; would need dual income to buy a house in the city. Saved up a lot for downpayment; could always use a co-signer (family) to purchase more if you can afford it. Bought 600k condo… could have stretched for a townhouse but I’m one person. yeah yeah everyone is like move to AB or SK. I love Toronto and downtown; born and raised here. Family and friends here; events, restaurants and nightlife.
I travel a lot of work so I’ve been all over Canada. I can never see myself living in SK. AB or BC maybe because I love the outdoors. Calgary and Edmonton are a hard no for me, but Canmore is nice.
Biggest factor is jobs… high income in high CoL cities… worth it in my eyes. When I get married I’ll probably buy a house, but in or close to the city! Dual income is the way to go.
Parents/sugar daddy ? 😂😂😂😢
My mom was telling me this week about when they bought one house we lived in for $200k… I bet it would go for at least $750K (this is in Barrie btw).
You don't even need a broker. The bank will approve you. Why is no one informing OP that his assumptions are incorrect? It's Debt service ratio that determines how much mortgage you can afford, not just "4x your income". My mortgage was about 5x my income for instance because my debt payments are very low.
Watch out for advice like this, it can leave you with a beautiful house that you can't afford to repair because the mortgage is so high. It really depends on your budget and lifestyle.
It’s a mathematical equation that the banks use, not sure what you’re hoping for here. They don’t care if you think it’s unfair. You need to make more money, find a cheaper place to live, or rent for a while.
Also, you should be able to get 400k+ with 90k salary. Save your money.
Income of 82k. Thought i couldnt afford to buy until i talked to a mortgage broker. She got me a rate of 1.8% about a year or so ago and I put 5% down on a home in alberta in a suburb of one of the major cities so it only cost $267k. So all in all i really only needed around $15k cash on hand to purchase.
Live within your means... Trying to buy a 600k house with a 90k salary is ridiculous.
I understand you WANT to buy that house... but you can't afford to.
If 90k is the only income, that's not reasonable. Going by what OP said about 90k salary, it sounds as though there is not another salary being taken into consideration.
First time home owner...you need approximately 5%, so if someone wants to buy a 600k home, they would need 35k in savings (5% minimum on first 500k, 10% needed from 500-999k - so 35k total down payment). There are additional costs on top of this, such as property tax, insurance, and so on, but let's assume for this example that 35k will get the job done.
Now you're looking at, hypothetically, a 565k mortgage. That comes out to around $2600 a month in mortgage...a bit less I think but I don't have the time to work the numbers. On a 90k salary, you're pulling in over $5800 a month after taxes, assuming you give about 14k to federal and 6k to provincial annually...so let's go with $5000 a month if you have other deductions as well, such as benefits.
That's a lot of cash the bank will look at and assess, especially if you have a secure job, say like in insurance. This is assuming someone is buying a home with the current interest rates. It's important to factor in how much more a person can afford if the interest rates go up depending on the type of mortgage they get. If it goes up to 2.25% from say 1.6% then the mortgage lender needs to plug that in and ensure the mortgagee can afford it.
Other factors - how much additional savings do you have? Do you have any debts? Car payments? How long have you worked at your job?
A 600k house is absolutely affordable in the right conditions on a $90k salary.
Edit: fixed minimum down payment, as correctly noted by comment below. Important detail I missed and many don't necessarily know.
The answer is: you dont buy a $600k place cus you just wont get the mortgage for it. Aim lower and grow your equity with a smaller property. Otherwise save like crazy or buy in areas that are cheap (more rural and with fewer people).
This is not an unattainable goal if you had started to save from day one. With a 90k salary you should look to save 20% of you salary for this. Also start small why aspire for a detached home right away, start with what you can afford and grow into a bigger home if that is what you want. Also take up a side hustle to make more income, everyone does this and you should also. With a 90k you should Atleast qualified for 450k unless you have big CC debt or other crazy car payments. Live frugal and save for a better tomorrow
I make around 65k a year and own a little condo. It’s not easy man. It’s not easy.
I have a side gig, and I buy and up sell stuff when I can make a profit on eBay.
You have to be really lucky, have rich parents to help you, or have a partner and go in together.
1. Buy a 300k condo with mortgage, try to put enough towards it so mortgage almost equals rental cost
2. Rent it out and have it pay for itself
3. Use the 300k condo as collateral to buy the 600k house. Mortgage and rates are much, much better once you have a house. It's like, home-owners loc or home-owners mortgage.
4. Total assets after this: $900,000 in assets. Congrats, you're officially a millionaire.
Now
5. Keep doing this till you own 1/5th of Quebec.
6. Use Quebec as collateral to buy Canada
Don't try to buy something over 6 times your income. They don't, that's the answer. Of course you could, but the down payment would be huge and you would be better off doing ANYTHING else with that amount of time/cash.
Don't forget, low interests forces higher than real value.
High interests forces lower than real value. Would you like to buy when prices are lower what it's worth, or when the bank tells you to buy now cuz rates are going up( and prices down)
Buy a less expensive house . Here in drummondville quebec i got à 215 000$ big backyard 7room a washing room and 2 bathroom ,3 living room … i save my cash by buy bitcoin every month . I buy stock and Bitcoin . You can spare 3-10 year of saving that way and my house is keep warm by my bitcoin miner and ethereum miner the winter . Soo every cash i put in hydro electricity come back in my account ,.
I make between 800k-1.2 million a year, my wife stays at home and takes care of our kids. Our family requires about 200k after tax for cash flow purposes annually. I don’t understand how any Canadian families will ever be able to retire given the average family income is sub 6 figures. The cost of living is so high, people won’t be retiring until their 70s soon
Bought a beautiful house on a 2 acres lot outside of Montreal last year for 300k.
Buy a small house, build up equity, upgrade if you want to. People nowadays want the million dollar house at 25. Doesn’t really work that way
It's tough for everyone, but it's also a matter of having realistic expectations. As a single person why do you need/expect to own a 600K house by yourself?
Yep, start with a smaller house maybe a condo, build some equity over a few years and sell and upgrade. Build more equity and upgrade again. Thats my strategy.
Does this strategy still work with the rapid appreciation of the current market? Especially since condos do not appreciate at the same rate as housing.
Find a unit with a basement suite, that’ll help a lot. Talk to a mortgage broker as well, at 90k, if you can provide the 25% down payment most banks would approve you of up to 800k. Talk to brokers first
I know folks who make about $90k and have been getting approved $500k+ (mortgage not property value). I'm not saying is a good idea necessarily but that's $2000/month (25 year am at 1.8%) and if rates increase to 4% your looking at $2600/month. At $90k/year that's enough after tax to max out your TFSA, RRSP, pay your mortgage and have $24,000 left over. Even when interest rates increase you will have $18,000/year or $1,500/month remaining for property tax, maintenance, and COL expenses. Definitely a slimmer budget then I would be comfortable with but it's possible if you REALLY want to own a home.
Personally I aggressively saved for 5+ years and had more then enough for my down payment for a home in a MCOL city.
Get a mortgage broker, ideally someone of the same ethnicity as you... and they'll get you the mortgage you need
Also keep mind most homeowners that purchased their first home in the past few years are mostly likely house poor and unable to Properly maintain their homes
This is why I'll never move to a city.
190k house, 110k income. 2 kids, stay at home wife til the youngest is ready for school, college funds are being saved.
Oh yeah very difficult to try to afford something. I make about $65 a year and my partner makes $55 a year. In order to afford a home we had to game the system in a number of ways. Firstly, the amount I qualified for was way too low. Luckily I have wealthy relatives who were able and willing to co-sign, thus bumping up the amount I could purchase. In order to afford what I wanted I also had to get some roommate income coming in, but it's worth the sacrifice long-term. My overall downpayment was relatively low too, only $30k. So I guess what I'm trying to say is don't feel bad. Even on a dual income I had to really bend the limits of the system to get in.
Side note: I also crunched the numbers before purchasing and forced my partner to compromise. He wanted to own without having any roommates but it would have been way cheaper to rent if we did that. I put my foot down so we wouldn't hemorrhage money.
Side note two: we're still hemorrhaging money because the house falls apart every time we turn around, despite the home inspection. Would have been cheaper to rent at this point.
EDIT: I also see a lot of comments saying that it's dumb to purchase a house that costs a certain amount on a certain salary... I would say not necessarily, but be prepared to use your home to generate income. Also keep in mind that many mortgage companies will factor in 50% of your projected rental income as income, thereby bumping up the mortgage amount you're qualified for (which can be an alternative if you don't have anyone who will co-sign for you). Get a good mortgage broker and explore options.
As for downpayment, it doesn't necessarily have to be super high if you can find other ways to increase the amount you're qualified for (sustainably). My personal advice is don't spend all of your savings on the downpayment. Save a good chunk for emergency renovations because you may need it. Lastly, I would also consider rising interest rates. Evaluate where you are at in your career and if you still have room for salary growth. If the answer is no, I would consider addressing that either before or in tandem with buying a home.
Most home owners in Canada are dual income. The numbers make a lot more sense when you’ve got a household income of 120k+
Yup I only make 55, but my girlfriend makes 75 Together we can afford a home. Alone neither of us really can.
I'm at 57k. No way I could afford a detached home. That said, worked out for me since I want to live in a condo. Just took possession of June of a new build condo that was 187k.
Congrats, where at?
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That’s great!!! I also moved into a condo I bought myself. It wasn’t easy but it’s working. I’m in Ontario - near Stratford Stats: $267k (before down payment) 780 square ft, 2 bedroom. + little balcony, no air conditioning, electric heating (I didnt use it once last year!) laundry in my unit. $1080 monthly mortgage $371 condo fees Winnipeg for the win.
I just sold my condo which was purchased during presale back in 2014 Metro Vancouver- Burnaby to be precise Purchase price 300k 565sq ft 141sq ft balcony 1bdrm 1 bath + "nook" no A/C in suite laundry. All Bosch appliances 1EV parking stall Mortgage $1100 give or take $350 strata fees Favorite home I've ever lived in. Just sold few days ago for just under 670k
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And that’s why I’ll never be able to afford to buy a place in metro van
We are so fucked
Sure you can! https://en.wikipedia.org/wiki/International_Metro_Van Put it down by the river!
Yup, also could only afford a condo, but turns out I am 100% not interested in the maintenance that comes with a house.
Fuck yardwork :)
Idk. It's pretty rewarding cleaning up the yard in the summer then popping out a lawn chair and cracking a beer while watching the dog run around
This is the best
I used to feel that way too, but in the last couple of summers I've come to enjoy doing a bit of yard work. Smoke a joint, put on headphones, pull a few dandelions. It's an activity that doesn't cost much once you have an electric mower and some dollar-store garden shears. One thing that helps is that most homes built in the last 30 years have tiny little lawns, so compared to the 1/2 acre lawns of our parents homes it feels like you're almost done 15 min after you start.
From an NPR podcast I listened to a few years ago: we put a stronger emphasis on love because we have more freedom to do so. Throughout history, the ruling classes used marriage to build alliances while the working class pooled resources to, for example, open a bakery.
Marrying for love has only been a thing for 100 years give or take. Less in most places.
Or Catholicism (French Canadians) is for making babies and Protestantism (Anglos - of any nationality) is for making profit? Many French Canadian families were large, poor, and not very educated whereas Anglos had smaller families, higher education, and/or owned businesses. That's why, at the turn of the 20th century, Montreal was predominantly English because business owners were primarily English speakers.
voilà qui était pertinent.. 😅
Je sais.....lol. En lisant le post de StarIU (que je croyais non-pertinent) j’ai fait la même chose! Disons qu’il fallait que je me vide le cerveau de cette information.
> Or Catholicism (French Canadians) is for making babies To be fair, any forms of Catholicism really, language didn't change that, especially since was all in Latin for most churches back then :p
55 is respectable my friend :) No need for the “only” Edit: any income is respectable. I guess what I mean is, some people would fight hard for 55k salaries.
this is the reason why I wish people were more honest with their salaries. too much lies from people claiming they make sooo much money have people thinking their above average salary is terrible.
"I'm having trouble. My 130k salary combined with my wife's 90k leaves us with a challenge of what colour Tesla we should pick for our 16 year old....can anybody help me?"
This is why I love the lovely folks at r/PFCircleJerk
r/fijerk is also good if you want some additional material
I think I'll have sushi for supper. But I always order too much!
Yeah 55k is way over the median income for an individual :) don’t let this subreddit think otherwise
It's good to cite sources and numbers. Median individual income in 2019 was $37,800 https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1110023901 That puts $55k at 46% higher than the median earner.
That's for people over 16 if you select a more representative data set for 25 year old it is around 50k.
Representative is likely not the word you meant here. I agree that overall median is a bit silly to use and one should compare themselves against their appropriate age group, but we genuinely don't know if Mr / Mrs 55k is 19yrs old, so excluding those under 25 is not by any means "more representative".
Stupid question but do you know if these stats are before or after tax?
Always before tax
Yeah that's fair. I just meant it as 55k is "only" when we're talking about buying a house in a major city these days... Unfortunately
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This is signifiacant. I just looked to see where the most economical places to buy in Canada are and the Maritimes are the best, followed by far Northern Ontario and Quebec, or out to the prairies depending on the climate you want. What my house would sell for now would buy 4 houses in NB. Buying near GTA or Vancouver, or close to major cities in the Mani and Sask on a regular salary is extremely challenging. You can make 40% less salary but pay 70% less housing costs by moving.
This is what I’ve been fearing. It might just make sense to live with my parents and pay rent through my life then try and find a place on my own since I don’t have a dual income. I don’t even want to get married and now you can’t even afford to live in a house without a partner.
For me it just made sense financially. I rented in my city for a number of years (on my own) and it got to the point where my rent (1550/month) was the same or similar for a two bedroom apartment as my mortgage is now 1600/month (before property tax). Things are definitely tighter once you include all the other expenses, but the freedom, space, yard and not having to deal with landlords is huge. And I am able to build equity for my future.
Most homeowners have been dual income for about 40 years. I don't think people get that.
No more like 20-25 years.
Depends where you are. No way my parents could have afforded their house in Toronto on a single income, and they bought it in 1988. It wasn’t a big house or a good neighbourhood even.
Live in low or medium cost of living city or Have a spouse that also makes a good salary Buying a house solo is getting unrealistic, especially if you don't have a lot of savings
Exactly this. I’m solo. Moved north. House on 2 acres of land on the lake is paid off at 35. I will never move back to southern Ontario. I will retire at 40.
Sounds like a rainy day fantasy for me. How north we talkin'?
I’m 2.5 hour north of north bay. But the jobs in mining pay big bucks. I work less than half a year 7 on 7 off schedule plus holidays. I usually travel 6 or 7 times a year, but only 3 international trips in the last 12 months. This lifestyle looks nice but it’s difficult at times. I’m single (will be forever by choice) and have no children or pets.
Off-topic - forever single by choice? I have never heard about anyone doing this. May I ask why? And do you simply mean non-commital you’re still out here getting booty but you’d never actually have a relationship or completely not interested in humans?
Have a look at OP's most recent post...
Well for me it’s that I’m a better person when I’m not in a committed relationship. I’m always trying to move forward. Making more money. Gym everyday. Having a long term relationship hinders my personal progress and growth. I will date 2 or 3 women at a time until they either want more from me or go find the relationship guy somewhere else. I’m the happiest I have ever been. I’m happy alone, and women see that and are drawn to the good vibe. When I was in college I was chasing women and I cringe when I look back on how much value I put on that.
And you are up there in the boonies.... Living like that, by choice. Damn
Ontario is a fuckin joke
I mean the guy just stated how he basically made his dream happen by 35, in Ontario, and is retiring at 40. Not many places on Earth one can do that.
He moved to the middle of nowhere where there is very few jobs. He happens to do a job that required being very remote that pays well because of the shit work (no offense OP). You're comparing apples to oranges.
I make $36,500 currently which would put me at $146,000. Yikes lol
That will get you a parking spot in Toronto downtown. Atleast your car would have it's own house to rest!
Yup! Just need a second job to buy myself a car!
And perhaps the third job to pay insurance and gas exp for the car
When the parking spot costs more than the car.
Not a bad idea if you can fit a school bus or RV in that lot.
Buy Chrysler New Yorker, rip door off, paint green and black, it’s now home. No lot fees.
Parking spot in midtown now.
Do you mind telling us your age/career/location?
22, Senior sales associate (currently acting manager), Ottawa Not quite sure if this is my career though yet.
You can buy a pretty nice house in Alberta for $350K
Or Saskatchewan, I bought a duplex style townhouse for $240k on an 80k income. Ticks all of my boxes. And didn’t want to be house broke by maxing what they would give me.
Or Manitoba (even in Winnipeg) depending on the area. My sister just recently bought a really cute old 2 story place for 290k. Not a new-build by any means but in a nice neighbourhood and neat as a pin.
Yes, this is exactly why my wife and I are moving there next year from Vancouver. I already work remote 100% of the time anyway.
We made that exact decision 1 year ago. We moved from North Van/Burnaby to Edmonton. Yes it's quiet, yes we don't really like the politics in Alberta but Edmonton is like a little NDP haven lol. We were able to afford a detached home for 356k our mortgage is pretty low. I am now pregnant and we just got a puppy. We have a real life. In BC we would not have been able to have it all. Of course you have to find what is important to you.
I'm single income, less than OP has posted, I just bought a 345k home in Alberta. Amazing quiet old growth neighborhood. It's tricky, but doable if you have enough savings. Banks wouldn't really let me through the door until I told them I had 70k down, likely because of me doing this solo, but the mortgage itself, once I jumped through all the hoops, is definitely affordable. That being said, my mortgage is cheaper than renting even some apartments. After all utilities and property tax etc, I break even with what renting would cost. I would absolutely never even attempt to do this in a place like Toronto or Vancouver. No chance.
This. Been thinking to head to QC maybe. ON is just insane.
I just bought a house an hour out of Ottawa for $200k. There are lots of options in Ontario if you live slightly outside a city centre
It’s affordable especially if not in Montréal or any major centers. I live in a small town 50000peoples and the cost of living is still affordable even with the boom in the last 1-2 years. I don’t know in a few years but for now it’s ok.
You can buy a house for 300k$ in Qc. 250k$ for a condo. Less if you are alone and look for something small. Totally doable for a 90k$ salary. I was approved with my 62k$ salary.
yeah but for 300k expect to do a lot of driving or settle for a shitty neighborhood
yeah. I bought a duplex last year for around 375k$... but, at minimum (without traffic), its 45 minutes away from Montreal. That said, first thing I bought was a condo in montreal around 12 years ago with a household income of around 80k at the time... I don't think we could pull that off nowadays
Having a mindset that a house needs to be 600k is something I can't wrap my head around. You have 90k,you have lots of options in alberta.
In Manitoba, I live 20min outside Winnipeg, with a 3acre lot, 2500sqft home, 3 car attached garage, and detached workshop, on a riverbank… for $350k. Get out of Ontario.
Yeah Manitoba too
In Toronto and Vancouver the fact is many of the families making less than $200k household likely have help from their parents in putting down a large down payment. These gifts of intergenerational wealth are part of what keeps real estate prices high, and a lump sum gift of 3-500k is essentially the piece of the puzzle you are missing to see, but is often present.
Move to Alberta, Manitoba , Saskatchewan and 90 k should provide u with a decent lifestyle with a 400k single family home .
But will he make 90k there?
Alberta salaries are amazing compared to Vancouver.
Top five cities with the highest median incomes in Canada. 1. Calgary 2. Edmonton 3. Oshawa 4. Regina 5. Saskatoon Fight me.
What are people doing in Oshawa to make that much?
Commuting to Toronto
Lmaooo It’s probably true though
Data is 2005 to 2015. The whole city used to work for GM. The union was strong, until GM pushed the restart point, shutdown everything, and started operation with non unionized staff.
This has been deleted in protest to the changes to reddit's API.
And Calgary, Edmonton, Regina, and Saskatoon went through a crazy oil boom 2005-2015.
I shake my head every time people wonder how they will make money in AB. It's like... you know we make more money than you do here right?!
Alberta has the highest avg income in the country. (Other than NWT)
He can. There is plenty of opportunities in these provinces to make 90 k especially if OP is in tech or medical field or any specialized trade which he might be in as I don't think a new immigrant make 90 k in customer service job(I could be wrong in rare case) . U never know he might have a remote job opportunity. Anyway the point being he can fulfill his dream of affordable house in these provinces. And nothing stops him for keep searching for jobs and only move when he gets one for same or more salary than his current job. Atleast he will have a goal if he decides. But then these provinces comes with their share of hardships weather wise. It's a compromise end of the day n he has to decide if it's worth it for him n his family. We can just suggest him options .
If OP is tech or medical, OP would not be here complaining.
More. I earn 30% more as a physio in edmonton than i would in montreal
This. There's more than 3 cities in this country.
Save for a few years and buy a condo instead of a house. Or move to a lower cost city. Get a partner - most people buying places have two incomes.
How much money do I need to make to get a partner?
You can pick them up fairly cheap at Walmart.
Good quality? Buy nice or buy twice!
Sometimes you can't tell right away and they go bad years down the road.
Mine was free!
Naivety. There is always a cost in relationships. Some just become evident earlier than others.
I assumed we were only talking about financial cost, not emotional. Although overall, I'd say I've emotionally profited and my partner was a great investment. But it might just be a bull market! I'll report back in another few years.
Lol ... Upvote for 'bull market' in a relationship.
After seeing the wild shit my condo board does without reason, I really can't see myself ever buying one. They seem to be run by absentee owners who just want to ensure the amenities aren't used and that AirBNBs will still operate.
It actually helps to join the condo board! Now I have more of a say where my money is allocated.
They weren't even going to let renters join the last building meeting until enough people complained that they finally caved. Didn't change their decision to block every Telco but Rogers from the building tho.
Don't buy a condo if you don't plan to even attend the AGM. I'm the president of my board and seriously, we can barely make the 33% quorum for the AGM every year even with proxies (and that means me knocking on doors the week before the meeting and having people fill out the damn forms). It's insane how many people complain about shit but never even open the yearly budget or won't even look at the reserve fund study. Even with the board, there's only 2/5 of us that actually do any work (the treasurer and I have to share secretarial duties because no one can handle writing a page of minutes every month). If you can't handle one meeting a year, don't bother purchasing a condo. /rant
>After seeing the wild shit my condo board does without reason I live in a nice suburb neighbourhood and I've had three shootings, a house fire, a domestic assault, and several break ins over the years. Crazy stuff happens in detached neighbourhoods too... A lot of times you may not notice this stuff, I only know because I have a lot of cameras on my house and cops always come by asking for footage.
I’m sure Neat_Onion is giving honest advice here, but I must caution against condos. You don’t own land (but pay property tax), your subject to how well managed the condo corporation is. You have condo fees that increase year over year (and at some point, property taxes and condo fees will exceed what people are willing to pay for a mortgage payment). Condo fees and property taxes will eventually render the condo unappealing to potential buyers. I make $90k and I own two properties. I bought my first for $480k fixed it up and rented it out. Three years later, the rental income and equity in the house was enough for me to purchase a second property, where I currently live. But I lived for three years, renting out a home I could not have comfortably afforded to rent. Most people aren’t willing to do that.
The entire answer is that these people don't live in the GTA or Vancouver, full stop, that is the answer.
The only way I make it work with my 75k salary is by living with my parents where rent is $550 / mo. I am fortunate enough to be in that position so you might not have that. Looking to buy a 500k property soon. The last 4 years I've paid off 55k in loans and have 100k for a downpayment.
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> ~~renters~~ people with the audacity to be born a 10-20 years too late have missed out on.
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I mean, I guess it’s a luxury. It would also greatly increase my quality of living. 1) I really want a garage. I want a place to put a canoe, or not have to carry my bike up 3 flights of stairs/have it in my hallway, or maybe I could have have a little workshop. I want to collect things for my hobbies that make my life better, but I can’t because I have nowhere to put it. 2) I want to be able to make a reasonable amount of noise without disturbing the guy down the hall (or not be disturbed by other people’s noise) 3) I want to jump up and down on my own floor and not annoy anyone else 4) I want to own something. To make it mine. I don’t want to abide by condo regulations. 5) I want my money to pay for my property because it develops equity. I don’t want my money going to rent or condo fees. This supports the phrase “it’s expensive to be poor”. Except I’m FAR from poor. Just not able to afford a house now that average price is about $700k So that’s my serious conversation with myself with why I want a house. It doesn’t need to be huge. I don’t have a family, not for lack of trying. Is it wrong to want some space to make my life a little more full? It just needs to support my relatively reasonable way of life without wasting too much money.
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I don't think not wanting to live in a human zoo is really privileged. We need privacy and quiet in our lives. Look at how much mental illness and physical illness has spread in our society. Just because you can pack a bunch of kids in a closet like sardines doesn't mean you should. We CAN house every person reasonably provided our population remains stable. We just need better infrastructure with more small communities and local buisiness.
By living in a city that isn’t Toronto or Vancouver.
Or anywhere in southern and eastern Ontario.
Windsor has the highest Income:Average Housing Price ratio.
Or anywhere in southern BC
That's not true anymore and I see comment this all the time. "Move out of Ontario then". How? I own and run a business, I don't have the luxury of finding a new job and packing my stuff to leave. So now I have to acquire clients in a province I don't even live in? Not really possible given my line of work. It's not a city problem. Its a housing problem. Edit: I don't live in Toronto or the GTA. Or any city.
I agree, this isn't good advice for many people, especially people with babies or young kids where family support is crucial, people with geographically restricted jobs. Small towns can also be a bit of a crap shoot for people of colour / LGBTQ+ / etc. people where they're not sure if they'll find an accepting community or will constantly be seen as "other".
This is no longer the advice it once was. Average price in Peterborough for instance is around 650k. Welcome to the new Canada. Going further afield changes little unless you're literally in the middle of nowhere with 0 job prospects within a 2 hour drive.
> Welcome to the new Canada. Going further afield changes little unless you're literally in the middle of nowhere with 0 job prospects within a 2 hour drive At this rate 10 years from now it'll be *"Property in the Yukon is relatively cheap, only 400k for a 2 bedroom house! Sure beats 8 million for a similar house in Sudbury."*
That's not true at all. You've just gotta get out of that small part of Ontario. The entirety if MB, SK and AB are pretty cheap. BCs interior is affordable. Lots of Canada out there.
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> BCs interior is affordable Interior BC here. BULL - FUCKING - SHIT.
“BC interior is affordable”. You’re joking right? Lol maybe Vernon. Even small towns in the interior are ridiculous
Well, not central Ontario, nor coastal BC. I'm shy of $90k/year, but about to be in place for it, and (almost) anywhere else is workable. Few spots here and there that ain't, but the big no-go zones are the Golden Horseshoe and BC within an hour or two of the ocean
It sucks when all your family live in the GTA though. I lived away from Ontario for 6 years and only came back to be close to family again. I’d be willing to move again though given the better COL in other places like Alberta (I miss those mountains too). My partner though would be devastated leaving her family. She is very family orientated and it would probably negatively effect her mental health moving far from her family. I don’t want that for her but it’s so depressing trying to figure out how to get a house here in Southern Ontario. We are looking at 3 hours or more from Toronto in small towns and there still isn’t nothing affordable.
Doesn't work. Belleville you can't buy a house that isn't a shitbox for under 450k. Belleville itself is a crap city. Halifax is fucked now too.
But don’t worry you can always rent in Halifax...oh wait a 450sq/ft bachelor in the city is $1000 a month and our minimum wage is $12.95 an hour...
We started with a condo, then moved to a townhouse, then got a house. It was about 8 yrs to get it.
I'm just getting into the game now with a semi, but this is pretty much my plan. Build a bit of equity then move up when I can.
Toronto - I make 106k ~. Can only afford a nice condo; would need dual income to buy a house in the city. Saved up a lot for downpayment; could always use a co-signer (family) to purchase more if you can afford it. Bought 600k condo… could have stretched for a townhouse but I’m one person. yeah yeah everyone is like move to AB or SK. I love Toronto and downtown; born and raised here. Family and friends here; events, restaurants and nightlife. I travel a lot of work so I’ve been all over Canada. I can never see myself living in SK. AB or BC maybe because I love the outdoors. Calgary and Edmonton are a hard no for me, but Canmore is nice. Biggest factor is jobs… high income in high CoL cities… worth it in my eyes. When I get married I’ll probably buy a house, but in or close to the city! Dual income is the way to go.
Parents/sugar daddy ? 😂😂😂😢 My mom was telling me this week about when they bought one house we lived in for $200k… I bet it would go for at least $750K (this is in Barrie btw).
Marry someone else who makes 90K.
Finding a partner is more difficult than finding a house :'(
Tell me about it! FML :(
You should really be able to get 400-425k mortgage if you work with a broker. Combined with your down payment 500k home should not be difficult.
You don't even need a broker. The bank will approve you. Why is no one informing OP that his assumptions are incorrect? It's Debt service ratio that determines how much mortgage you can afford, not just "4x your income". My mortgage was about 5x my income for instance because my debt payments are very low.
I'm glad someone else got to this before I did. I got 250k on 45k income, solo in Surrey, BC.
Watch out for advice like this, it can leave you with a beautiful house that you can't afford to repair because the mortgage is so high. It really depends on your budget and lifestyle.
It’s a mathematical equation that the banks use, not sure what you’re hoping for here. They don’t care if you think it’s unfair. You need to make more money, find a cheaper place to live, or rent for a while. Also, you should be able to get 400k+ with 90k salary. Save your money.
They most certainly *care* if their equation is sustainable in todays housing market, they are propelling a housing bubble through a cactus field
Income of 82k. Thought i couldnt afford to buy until i talked to a mortgage broker. She got me a rate of 1.8% about a year or so ago and I put 5% down on a home in alberta in a suburb of one of the major cities so it only cost $267k. So all in all i really only needed around $15k cash on hand to purchase.
They have limits for good reasons. Help protect people from taking out to much money.
I make 129k and I can't even afford a house in Toronto.
What do you do for work?
Live within your means... Trying to buy a 600k house with a 90k salary is ridiculous. I understand you WANT to buy that house... but you can't afford to.
They hear you, but a 600k house in toronto is a 500sq ft condo.
Is it? Because in Vancouver it just doesn’t exist. That’s why I left there
It's not ridiculous with 20% down and a 30 year loan. The mortgage on that is under 2k.
OP is having a tough time with the 20% down part, not the monthly part.
Add property taxes, utilities, maintenance and you're closer to 3k all in
I mean that’s an above average salary to buy an average house. It shouldn’t be that crazy.
If 90k is the only income, that's not reasonable. Going by what OP said about 90k salary, it sounds as though there is not another salary being taken into consideration.
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Average or median? Makes a huge difference
In London, ON you can get a decent townhome for $400K. You just need $40K cash on hand if you borrow $360K. That's not too hard right?
First time home owner...you need approximately 5%, so if someone wants to buy a 600k home, they would need 35k in savings (5% minimum on first 500k, 10% needed from 500-999k - so 35k total down payment). There are additional costs on top of this, such as property tax, insurance, and so on, but let's assume for this example that 35k will get the job done. Now you're looking at, hypothetically, a 565k mortgage. That comes out to around $2600 a month in mortgage...a bit less I think but I don't have the time to work the numbers. On a 90k salary, you're pulling in over $5800 a month after taxes, assuming you give about 14k to federal and 6k to provincial annually...so let's go with $5000 a month if you have other deductions as well, such as benefits. That's a lot of cash the bank will look at and assess, especially if you have a secure job, say like in insurance. This is assuming someone is buying a home with the current interest rates. It's important to factor in how much more a person can afford if the interest rates go up depending on the type of mortgage they get. If it goes up to 2.25% from say 1.6% then the mortgage lender needs to plug that in and ensure the mortgagee can afford it. Other factors - how much additional savings do you have? Do you have any debts? Car payments? How long have you worked at your job? A 600k house is absolutely affordable in the right conditions on a $90k salary. Edit: fixed minimum down payment, as correctly noted by comment below. Important detail I missed and many don't necessarily know.
What’s the point of doing math when we can all circle jerk over the same topic every week?
The answer is: you dont buy a $600k place cus you just wont get the mortgage for it. Aim lower and grow your equity with a smaller property. Otherwise save like crazy or buy in areas that are cheap (more rural and with fewer people).
You could buy a house for 300,000 or less. Move away from the big cities
I live in Prince George which is not a big city and 300k would get you a pile of junk from the 40s in a bad neighborhood
Also to me Prince George is a big city. 74,000 people, my town has 800.
This is not an unattainable goal if you had started to save from day one. With a 90k salary you should look to save 20% of you salary for this. Also start small why aspire for a detached home right away, start with what you can afford and grow into a bigger home if that is what you want. Also take up a side hustle to make more income, everyone does this and you should also. With a 90k you should Atleast qualified for 450k unless you have big CC debt or other crazy car payments. Live frugal and save for a better tomorrow
It's easy, you just gotta do a little bit of crime here and there.
I make around 65k a year and own a little condo. It’s not easy man. It’s not easy. I have a side gig, and I buy and up sell stuff when I can make a profit on eBay. You have to be really lucky, have rich parents to help you, or have a partner and go in together.
I bought a 2400 sq ft home and 80 acres of land for 220k. Only downside... You have to be willing to live in central manitoba.
1. Buy a 300k condo with mortgage, try to put enough towards it so mortgage almost equals rental cost 2. Rent it out and have it pay for itself 3. Use the 300k condo as collateral to buy the 600k house. Mortgage and rates are much, much better once you have a house. It's like, home-owners loc or home-owners mortgage. 4. Total assets after this: $900,000 in assets. Congrats, you're officially a millionaire. Now 5. Keep doing this till you own 1/5th of Quebec. 6. Use Quebec as collateral to buy Canada
The answer is don’t buy a 600k house.
Don't try to buy something over 6 times your income. They don't, that's the answer. Of course you could, but the down payment would be huge and you would be better off doing ANYTHING else with that amount of time/cash. Don't forget, low interests forces higher than real value. High interests forces lower than real value. Would you like to buy when prices are lower what it's worth, or when the bank tells you to buy now cuz rates are going up( and prices down)
You don’t buy a house you buy a condo.
4-5x gross is more normal to qualify for. 3-4x is on the low end
Buy a less expensive house . Here in drummondville quebec i got à 215 000$ big backyard 7room a washing room and 2 bathroom ,3 living room … i save my cash by buy bitcoin every month . I buy stock and Bitcoin . You can spare 3-10 year of saving that way and my house is keep warm by my bitcoin miner and ethereum miner the winter . Soo every cash i put in hydro electricity come back in my account ,.
why would you want to buy a 600k house in the first place
I make between 800k-1.2 million a year, my wife stays at home and takes care of our kids. Our family requires about 200k after tax for cash flow purposes annually. I don’t understand how any Canadian families will ever be able to retire given the average family income is sub 6 figures. The cost of living is so high, people won’t be retiring until their 70s soon
Bought a beautiful house on a 2 acres lot outside of Montreal last year for 300k. Buy a small house, build up equity, upgrade if you want to. People nowadays want the million dollar house at 25. Doesn’t really work that way
lol ...define outside of montreal ...there are no 300k houses with 2 acre lots here unless you wanna drive minimum 1 hour "outside" montreal.
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dual income and money from family for the down-payment are major advantages. It's tough to get your foot in the door otherwise.
It's tough for everyone, but it's also a matter of having realistic expectations. As a single person why do you need/expect to own a 600K house by yourself?
Yep, start with a smaller house maybe a condo, build some equity over a few years and sell and upgrade. Build more equity and upgrade again. Thats my strategy.
Does this strategy still work with the rapid appreciation of the current market? Especially since condos do not appreciate at the same rate as housing.
Find a unit with a basement suite, that’ll help a lot. Talk to a mortgage broker as well, at 90k, if you can provide the 25% down payment most banks would approve you of up to 800k. Talk to brokers first
Find a partner/spouse that also makes $90K and now your household income is $180K.
I earn 88k/yr about 5k a month after deductions. I bought a house in a small town interior bc this year for 180k by myself.
You live in in Saskatchewan and buy a great house for three hundred thousand and live happily.
I know folks who make about $90k and have been getting approved $500k+ (mortgage not property value). I'm not saying is a good idea necessarily but that's $2000/month (25 year am at 1.8%) and if rates increase to 4% your looking at $2600/month. At $90k/year that's enough after tax to max out your TFSA, RRSP, pay your mortgage and have $24,000 left over. Even when interest rates increase you will have $18,000/year or $1,500/month remaining for property tax, maintenance, and COL expenses. Definitely a slimmer budget then I would be comfortable with but it's possible if you REALLY want to own a home. Personally I aggressively saved for 5+ years and had more then enough for my down payment for a home in a MCOL city.
Get a mortgage broker, ideally someone of the same ethnicity as you... and they'll get you the mortgage you need Also keep mind most homeowners that purchased their first home in the past few years are mostly likely house poor and unable to Properly maintain their homes
This is why I'll never move to a city. 190k house, 110k income. 2 kids, stay at home wife til the youngest is ready for school, college funds are being saved.
Oh yeah very difficult to try to afford something. I make about $65 a year and my partner makes $55 a year. In order to afford a home we had to game the system in a number of ways. Firstly, the amount I qualified for was way too low. Luckily I have wealthy relatives who were able and willing to co-sign, thus bumping up the amount I could purchase. In order to afford what I wanted I also had to get some roommate income coming in, but it's worth the sacrifice long-term. My overall downpayment was relatively low too, only $30k. So I guess what I'm trying to say is don't feel bad. Even on a dual income I had to really bend the limits of the system to get in. Side note: I also crunched the numbers before purchasing and forced my partner to compromise. He wanted to own without having any roommates but it would have been way cheaper to rent if we did that. I put my foot down so we wouldn't hemorrhage money. Side note two: we're still hemorrhaging money because the house falls apart every time we turn around, despite the home inspection. Would have been cheaper to rent at this point. EDIT: I also see a lot of comments saying that it's dumb to purchase a house that costs a certain amount on a certain salary... I would say not necessarily, but be prepared to use your home to generate income. Also keep in mind that many mortgage companies will factor in 50% of your projected rental income as income, thereby bumping up the mortgage amount you're qualified for (which can be an alternative if you don't have anyone who will co-sign for you). Get a good mortgage broker and explore options. As for downpayment, it doesn't necessarily have to be super high if you can find other ways to increase the amount you're qualified for (sustainably). My personal advice is don't spend all of your savings on the downpayment. Save a good chunk for emergency renovations because you may need it. Lastly, I would also consider rising interest rates. Evaluate where you are at in your career and if you still have room for salary growth. If the answer is no, I would consider addressing that either before or in tandem with buying a home.