As per the links posted by Freddie, its 25-30% of your gross salary and not after tax salary as indicated by Patrick.

correct ?

Quote:

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Originally posted by kabutar12
As per the links posted by Freddie, its 25-30% of your gross salary and not after tax salary as indicated by Patrick.
correct ?

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Who's buying these days?

Rahul that's very nicely written and some excellent points.

If the formula which Pratick suggested is to followed by banks in calculating Mortgage amount then 70-80% of the borrowers would become ineligible for mortgages. So this is rightly the root cause of current mess as per Pratick.

This mess got into even a bigger and bigger mess by giving 40 years mortgage with zero down as Rahul has been saying for a long time.

Good lock and May God bless eveyone!

Quote:

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Originally posted by kalia

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

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Quote:

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Originally posted by kalia

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

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