--held horses --

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Fido.

Hold your horses, guys!

There are various ways, a family with $150k/annum income could still not afford the house of >600k. It is not necessarily be because they are unable to secure a mortgage. It's more about quality of life. Yes, you can get a mortgage for even 700k $hitty house, but is it worth spending that much while seeing the depleting savings on a house that is not decent, not in a desired neighborhood, have substandard school district, and longer commute times? This is what's happening here in BC (I am sure in Toronto too). People want value for money. I was browing MLS last night, and believe me anything less than $650 is a crap 25 years old $hithole in a substandard neighborhood - not the desired one. Now, even if you are able to secure a loan, how would your quality of life be impacted, while you still keep paying through your nose month after month. Happiness? Goes out of the window.

This is what I meant when I said, even if you pay 20% down on 600k, chances are that you would still not able to afford the house that you want to "happily" live in. Can you extend your budget to be able to afford a little on a high side? You will then not be able to pay 20% down.

Come to Vancouver and it will open your eyes to what I am saying. 3 of us, friends/acquaintances are sailing in the same boat, and it's not a hearsay.

You guys are right, however, that Banks or Mortgage brokers could approve the mortgage. But, that's not the whole picture.

Febpreet - from an intangible viewpoint, yes, I agree with you are stating. To begin with, I can't, for the life of me consider buying a $600k home, which ends up being a basic homestead. It's outrageous. I've lived in a brand new 2500 sq feet home in a prime neighborhood for less than half of $600k.

However, from a pure money point of view, it is possible.

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Dimple2001

Let me update. 600k newer houses here in Surrey is a thing of the past (week). As it stands this week, all decent houses (worth buying) are not less than $700k. So, a family who's making $150k/annum has to up their down payment or get an even higher mortgage if they want to live someplace decent with lower monthly mortgage payments.

Yea, you can still buy a 3 BR, 25 yr. old, substandard 2 level house for $625k, or the newer 2500 sq. ft built up one.

Here to give you an example. I liked this house that was listed for 599 until last week. This guy suddenly realized the market is getting insane and revised the price to $625 2 days ago. I am sure, this will be sold for $650 with the multiple offers.

I haven't touched upon the Vancouver and its neighboring areas/cities yet.

Oh! Did I also mention, Vancouver has no real industry and job market unlike Toronto?

Quote:

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Originally posted by dimple2001

Febpreet - from an intangible viewpoint, yes, I agree with you are stating. To begin with, I can't, for the life of me consider buying a $600k home, which ends up being a basic homestead. It's outrageous. I've lived in a brand new 2500 sq feet home in a prime neighborhood for less than half of $600k.

However, from a pure money point of view, it is possible.

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Febpreet: The problem is like majority of people, you have too many boxes to check.
1) A big house by desi standards.
2) Best public schools.
3) Short commute.
4) Located in a desi friendly community.
5) lovely weather.
6) etc etc etc etc etc etc....

Unfortunately, you have another 3 million people with the same checklist....who are looking at MLS every 2 minutes hoping to find that one dream house. Eventually, the one with the lowest IQ + bigger mortgage will score it.

If you are willing to sacrifice one item from the above list you will find what you are looking for.

Small towns with good technology hubs(e.g waterloo) offer you a big house, good schools, peaceful living, stress free life, good commute, secure, community oriented life. But, are you ready for it?

The more you look at MLS......the more hair loss you will have. :-)

Gap is going to close 175 Stores in North America including some of the stores in Canada.

Now a days, so many people likes to do a online shopping that causing and leads to close most of the big mall stores.

I am not wondering that very soon we will come to know that Hudson Bay, Canadian Tire, Old Navy and other stores are going to close very soon in Canada.

I think these all leads towards low growth in economy and coming some more job cuttings very soon.

http://www.cbc.ca/news/business/gap-to-close-175-stores-in-north-america-1.3114615