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Originally posted by irock

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Originally posted by febpreet

If people with the combined household income of >150k can't afford 600k houses with 20% down payment, then something is really wrong with the market.

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could you please elaborate on why can't a family with combined household income of >150K cannot affort 600K house....

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I don't know guys! Just what I have seen. I have a few friends that I think are making this close, and have been in the market looking to buy (including me, but my situation is different for being self-employed). They all have this commonality, and haven't secured a house. All 650k houses have been vanished anyway and in its place the new norm of 700k.

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Originally posted by san-hugo

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Originally posted by irock

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Originally posted by febpreet

If people with the combined household income of >150k can't afford 600k houses with 20% down payment, then something is really wrong with the market.

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could you please elaborate on why can't a family with combined household income of >150K cannot affort 600K house....

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Lol, Yes, please elaborate why there will be something wrong with the market if family with >150k will start to afford 600k house. ?

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i..........rock........!!!!!

what I meant & ask to elaborate was the financial numbers. I just wanted to understand why a family with household income of more than 150K, which comes to monthly $12.5K, or $9k approx after tax & with 20% down payment cannot afford a $600K house ???

600K house - 20% is 120K

so the mortgage would be $480K

Can't you qualify for a $480K mortgage if your monthly gross income is $12.5K ????

On the outset it looks simple but there are complications.
I wouuld guess that for a family earning 150 K with 2 small children, their savings with a 9K gross income would be around 4 K for sure.

Time to save 120K = 3 years . there are exceptions. You can get from your LOC / credit card / RRSP (the shortfall).

Then for mortgage is $ 480. So what will be your monthly payment?

I remember that in 2010 for a $ 250 K mortgage, we were asked to pay around $ 3000 per month so I assume that for a $ 480 K mortgage (at these times), it may be around $ 5000 a month.

Can someone crunch the numbers?

The problem is that not every one in Canada, buys house these days based on salary income. Some bring money from home (true for chinese).

I know that in 2009, our extended family had a combined income for $ 125 K and we found that we would be with $ 0 savings when we go for a 10% down and a $ 300 K mortgage.

Numbers are essential.

Murali

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I am a Gents and not a Ladies.

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Originally posted by irock



what I meant & ask to elaborate was the financial numbers. I just wanted to understand why a family with household income of more than 150K, which comes to monthly $12.5K, or $9k approx after tax & with 20% down payment cannot afford a $600K house ???

600K house - 20% is 120K

so the mortgage would be $480K

Can't you qualify for a $480K mortgage if your monthly gross income is $12.5K ????

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Dimple2001

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Originally posted by tamilkuravan


I remember that in 2010 for a $ 250 K mortgage, we were asked to pay around $ 3000 per month so I assume that for a $ 480 K mortgage (at these times), it may be around $ 5000 a month
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I know that in 2009, our extended family had a combined income for $ 125 K and we found that we would be with $ 0 savings when we go for a 10% down and a $ 300 K mortgage.

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i..........rock........!!!!!

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Originally posted by dimple2001

EDITED due to errors...

Most likely, one will qualify. At about 2.85% 5 year closed fixed interest rate over 25 year amortization, P+I is about $2250 per month. Add another $400 to $700 on property taxes and insurance per month. Fixed cost is about $2800ish.

http://www.tdcanadatrust.com/docs/mortCalc/MortgageCalculator.jsp

This payment is affordable, and if the individual has no other major debts, this is a very comfortable debt to carry.

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i..........rock........!!!!!