Apparently that's the new reality, unless you're willing to work 7 days a week and never see your family you're a lazy cunt who doesn't want to do what it takes to stay afloat. You can take that lifestyle and shove it up your ass. Enjoy your house, as well as the early grave you dug yourself being sleep deprived for 40 years working yourself to death, your kids will appreciate the early inheritance.

Just curious how much would you have to be earning alone or with someone before you can start affording good options? I'm trying to save for a downpayment for the next 5 - 6 years I hopefully have enough ($120-180k?) by the time i'm like 27. I have no idea what you really need to earn to have good options.

Its called involuntary slavery. At my last job in downtown (beautiful British Colony), 90% of the ~150 shift workers were temporary foreign workers. They came from countries like Brazil were life is cheap as you can get murdered for a material possession or Japan which has a high suicide rate and people working themselves to death.
That kind of model will be implemented in all colonies... its the Maxtrix of your own enslavement.
Watch as once most of the population is locked down slaving away at their mortgage, financial melt down... and there goes decades of hard work and time stolen from ones life.

What'd you buy as your fun car then lost 10k on lol

Walked by this little coffee shop on 4th and Vine. Mind you, it was never my favourite.

How are your taxes...

There are a million mortgage calculators out there that can tell you how much you need to earn to qualify for a given mortgage. Assuming you would put 20% down and saved $180k up, that's a $900k place.

If you bought a house for $900k (ie PoCo or Surrey/Delta), got a mortgage for 3.0% over 30 years ($720k mortgage), your payment would be about $3k a month. Assuming $500/month for utilities, property tax, and insurance you would need a household income of $120k/yr to qualify. This assumes you have NO other debt. Other payments such as car payments, student loans, etc would mean you'd need even more income to qualify.

-Mark

Mark has already covered the hard numbers for you, so there is little point for me to add on that matter. But I'll add the reminder that with the way current Vancouver housing prices are heading, the purchase price that you end up paying when you finally buy a few years down the line is almost certainly going to be a moving target trending up, up, and further UP. 2 corollaries to this is, the location you're considering will probably start sliding further away into the east / southeast / south, and the final purchases home size will be smaller than your current target home size.

Is that seriously what they are using to calculate if you qualify? 3% over 30 years?

I think Mark is an expert in this area, isn't he? From what I've gathered in the past, 30 years mortage is becoming more common though (even though I personally think it is ridiculous)

As home prices climb, taking 30 years to pay off mortgage is becoming new norm in Toronto and Vancouver | Financial Post

30 year mortgages are quite common if you don't need CHMC insurance. And 3% is just an estimate of a 5-year fixed rate - technically you will need to qualify at an even higher rate than that.

-Mark (who is a commercial banker - not an expert on retail mortgages, but it's pretty simple and formulaic)

Nothing wrong with a 30-year mortgage if you invest the difference in higher yielding investments, or you are having kids and have a reduced household income for a couple of years, or are making prepayments and are using the 30 year amortization as a security blanket in case shit hits the fan in your job, gig, etc.

If you are taking a 30 year amortization because you are at the absolute limit of your affordability, you're doing it wrong.

A lot of people (like us) also use a 30-year am because a significant portion of their income is in an annual or quarterly bonus. In my personal case, 1/3 of my income is paid in one shot in December. A 30-year am keeps payments reasonable through the year, then I can throw a big chunk against it in one shot if I like (though we are no longer paying our mortgage down accelerated and are instead focusing on using our left over RRSP space, then will return to mortgage repayment as a focus).

-Mark

what i meant is that you guys (or lenders) are assuming that the average interest rate for the next 30 years will be 3%.

That's pretty wishful thinking IMHO and probably qualifies people who can't afford a real interest rate hike.

Correct me if i'm wrong, but your mortgage is based on your term not your amortization like the US (As your term is your amortization period). Every time your term is up you need to re-qualify. Which is why it is a little scary where people have maxed themselves out at ultra low interest rates.

Kinda what the additional stress tests lately try to prevent I believe

You make it sound like he makes more money by working less :considered:

This sounds pretty doable if your fortunate enough to live at home. Even more doable with dual-income. Thanks for the quick explanation. Will be paying off my student loan in 2 days and still have like <$10k to go before I graduate.

You kind of do make a similar but less amount of money, when you work less. Depending on the tax bracket. Like the after tax of working 60 hours per pay period, is roughly the same as working 80 hours. Your take home cash is largely hindered by taxes.

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I love when people argue that. So very incorrect.

The reason you probably think it works that way is your company most likely taxes you each month on a monthly average. If you all of a sudden make twice your wage one month due to over time, they will probably tax you (On that cheque) as if every month was that high. meaning a much higher tax bracket then reality. It all evens out at year end, or you will just get a refund.

Take a peak how your income taxes work, federal and provincial.

I don't think anybody thinks rates will be 3% for the next 30 years. A huge percentage of the Canadian market takes 5-year fixed terms though, so you have 3% for the first 5 years; after that, a lot can happen.

When it's time to renew, maybe rates are 4 or 5%, but you have paid down a bit, the house goes up a bit, you are probably earning at least 10% more income (basically just 5x cost of living raises), there are options.

-Mark

Saving $200k in after-tax dollars is no joke. To do it in 5 years you'd have to be earning $60k/year right out of school and save literally every penny you ever earned (ie not realistic, even if you were living at home).

-Mark

Weird nobody posted this

https://www.google.ca/amp/www.cbc.ca/amp/1.4422668

Uh huh. I'm sure people would be just as upset if the land were being used for farming and not giant low tax mansions.

depends on how much he is into the next bracket :fullofwin:

Of course theres TFSA and RRSP