Can someone suggest how much should be minimum carry home Salary needed to buy home approx 300-325K with 10% or 20% down payment?

Thanks

You have to keep in mind that all your home-ownership related expenses should not exceed 25% - 30% of your monthly, after-tax income.
All home ownership related expenses come out of your after-tax income (unless you are registering a business in part of your home).
These expenses include mortgage, property taxes, insurance, equipment rental, regular maintenance/up-keep, such as landscaping, internal and external maintenance, etc.

Once these expenses start forming more than 40% or 50% of your after tax income, you won't be left with much discretionary income.

Of course, to do an accurate calculation, you have to know your mortgage payment, property taxes, your income tax bracket, etc.
Without that it's hard to come up with an accurate number.

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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"

Is it possible to buy a 4 bed 3 bath new single family for 350K ?

Qurious !!!!

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You know you are a desi when ........ You spew forth the virtues of India, but don't want to live there...............You've never had a tanning salon membership

If one has carry home salary of CAD $4500 per month net of income tax and if as per Pratick ownership related expenses should not exceed 25-30% that adds up to approx $1400. After taking out property taxes, utility bills, maintenance etc out of this leaves $800 for the mortgage. Considering the current mortgage rate, $800 may be good for a loan of $160-170K and add 10% down if one has, so one can afford up to $180-190k home. And do not think there is one available even at that price in Toronto under current down market. Additionally that One draws $75-80 K p.a gross in order to have carry home income $4500 p.m.

This leaves one to draw conclusion that to buy a home of $300-325K, one should have a carry home salary of $6000 to 6500 p.m. and gross of 100-125K p.a.

Can someone confirm?

Thanks

Hi Folks:

TDS CALCULATOR : What it enables you to calculate: Is the Total Debt Service Ratio or Take all of the expenses that you incur, such as Principal amount that you pay for the mortgage, Interest that you pay and the Taxes and the house House maintenance expenses, PLUS other expenses such as Car Payments, Credit Card payments, Personal loans. (But that does not include a loaf of bread on the table) And what do they say about it? NO MORE THAN 40 - 44 % of the Gross income. (This does not include the income from the rental properties.

http://www.cmhc-schl.gc.ca/en/hoficlincl/moloin/molointo/molointo_005.cfm

How much can you afford out of your pay check : http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_004.cfm
Are You Ready? : There is a table to Refer to: http://www.cmhc-schl.gc.ca/en/co/buho/hostst/hostst_002.cfm#CP_JUMP_28119

http://www.cmhc-schl.gc.ca/en/co/buho/buho_007.cfm

Another Project to think about. : http://www.cmhc-schl.gc.ca/en/inpr/afhoce/tore/into/into_001.cfm
Please visit and see if you can get into one, it is held in Toronto. : http://www.cmhc-schl.gc.ca/en/evca/evca_002.cfm?event=799&fr=1232915573575
And Who they are: http://www.chra-achru.ca/english/view.asp?x=1
For Other Locations scroll down in the calendar:
http://www.cmhc-schl.gc.ca/en/evca/index.cfm?date=200904&fr=1232915565872

Here is one fore the NEW Comers : http://www.cmhc-schl.gc.ca/en/hoficlincl/moloin/hopr/upload/CMHC-Newcomer.pdf

Mortgage Calculator: http://www.termcanada.com/mortgage_calculator

Term Life Insurance : http://www.termcanada.com/how_much_life_insurance It is a very good topic to discuss and I am all for it and advise each and every one to take a policy at least in the earlier stages of life to cover their near and dear ones. It costs very little and it is negligible when you see what it costs here for one to live.

Well here is something that has been on my mind for a long time and I have been wanting to post this to the board. Hope this will keep all of those who are prospective buyers and those who can't also get moving towards their goal and find a Haven here in Canada.

Believe me it is hard. But it is feasible. So, do not give up hope.

As most of the people have expressed here, their personal experience holds good and follow it up. These Calculators and pointers are just that. They use them here to calculate your ability to pay and what they use, just to tell you if you can or not. It is prudent to leave a large cushion for a soft landing and at the least three good months of money in Reserve Cash, and in the current times SIX months will not hurt, if you want to get out of the property unscathed.

Good Luck. Now work with this on paper and see how you come up with your calculations and see if it gets you into your "Dream Home"

Freddie.

Yes, this makes perfect sense if you want to have good night sleep. Before buying and putting down payment make sure you have addressed following points.

1. Pay you all debt especially high interest rate like credit card
2. Saving for rainy days
3. Keep putting or maximize your RRSP and RESP
4. Don’t count spouse salary while doing all these calculation especially in this job market.

How many people do you know with salary 125K and not owning the home?

Summary: House price going to crash does not matter which part of country you live and it's not a right time to buy.

Only way price can go up if REALTORS follow Toyota's advice. Toyota told all his managers to buy at least one Toyota car.

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http://www.greaterfool.ca/


There reasons are obvious to us all.

* More people are out of work and unemployment will be the most momentous economic story of 2009.
* Forty-year mortgages and zero down payments are now gone, eliminating a bunch of moist young buyers who inflated sales in the past two years.
* Chastened and newly risk-averse banks are lending more cautiously and prudently, which means gone are the days of people being offered loans requiring 70% of their income to service.
* Everybody knows the economy is fragile, tentative and at the tipping point. With governments poised for a do-or-die dive into bottomless vats of new debt, this is hardly the time to be taking on chunky loans to buy an average home.

Quote:

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Originally posted by kalia

This leaves one to draw conclusion that to buy a home of $300-325K, one should have a carry home salary of $6000 to 6500 p.m. and gross of 100-125K p.a.

Can someone confirm?

Thanks

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Brampton is the way to go .... http://canadiandesi.com/read.php?TID=12901&page=3 .. Read the 3rd page ....

Kalia ~ Just a minor addition to your calculation .... if you buy a house for 250K having a separate basement , your net mortgage requirement would go down by 600 pm ....

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Fido.