Member since: Sep 09
Posts: 99

Post ID: #PID Posted on: 29-09-09 13:11:37

I have few questions for the RE experts out there...

If a person’s gross salary per month is around 4500$ per month and his wife’s gross per month home salary is around 1300$ per month and also they are ready to make 100000 down payment towards house purchase then what is the best game plan they should adopt

I am thinking of going for 300000$ home where as one RE agent suggested to go for 400000$. As per him for 300K I will get house whether semi or detached only in Brampton which has PEEL school board where as for 400K I will get semi / detached in Vaughan area which has good school system running by YORK school board .

I need to get more info from u guys about what are the hidden costs involved during and after house purchase. I know this is not enough details but any general pointers will help.

We are small family and at present I do not have any other debt other then 200 p/m loan payment for my car.

Member since: Apr 05
Posts: 1014

Post ID: #PID Posted on: 29-09-09 22:25:46

hopesrforever27... that good you know your numbers. It might possible RE agent knows what numbers can work with your down payment and bank approval mortgage. But you are on driver seat.

This whole buying process is negotiation and negotiation at every step.

This makes sense to me atleast:


According to Demographia, here are the benchmarks:

Affordable – 3 times income, or less
Moderately unaffordable – 3.1 to 4
Seriously unaffordable – 4.1 to 5
Severely unaffordable – 5.1 and over
So, how are we doing? How about in cities like Halifax (family income $75,500), Toronto ($71,000), Winnipeg ($66,400) or Vancouver ($68,700)?

Member since: Jul 04
Posts: 12
Location: Toronto

Post ID: #PID Posted on: 01-10-09 00:21:52

Depends on your choice after all.

But you should consider property tax as well mostly around 1.25% of purchase price. Also based on area/price the long term appreciation.

Member since: May 05
Posts: 448
Location: Here and There

Post ID: #PID Posted on: 01-10-09 11:58:17

If your mortgage exceeds more than 3.5 times your gross annual income you COULD be in trouble. Remember interest rates now are quite low and all it takes is a solid 3-4 years of decent economic performance to shoot it back to 5-6% levels.
If i were you i would take a mortgage < 275K irrespective of the downpayment..Distribute your money... Invest in home, RRSP (GIC), Stocks, Funds etc. Dont put all your eggs in one basket..

Wait for a few months, house prices are high right now.. with the first rise in the interest rates they will come down again...

Live and Let Live

Member since: Dec 08
Posts: 1351
Location: Brampton, Ont, Canada

Post ID: #PID Posted on: 01-10-09 12:37:28

Any range u go with make sure u go with 20% downpayement to avoid CMHC fees. u will save about 5000$.

so if u r thinking of 400000 then u still hv roughly 80000 for downpayement and 20,000 balance,,,keep some for rainy day and invest rest ...

'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)

Member since: Jan 06
Posts: 412

Post ID: #PID Posted on: 02-10-09 01:19:29

Any range u go with make sure u go with 20% downpayement to avoid CMHC fees. u will save about 5000$...

1. I put in 10 % when bought home, hence paid some CMHC fee. When my equity reaches 20 % (in 5-6 months), can I get back the CMHC I paid?
2. I have some funds, I will need after about 5-6 months. Can I put the amount (for 5-6 months) in my mortgage.
(Mortgage is at 2.9 % wheras any other investment is giving around 1 %)


Member since: May 05
Posts: 448
Location: Here and There

Post ID: #PID Posted on: 02-10-09 11:04:44

1) No, you do not get your CMHC back...

2) No unless you borrow the money back as HELOC (Not a good idea)

Live and Let Live

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