Quote:
500k less 20% down = 400k mortgage
Example: BMO right now says 4.55% fixed for 5 yrs
use their website for payment calculator = $2,225.02 per month
dont forget to add maintenance fees (1000 sqft condo = about $300)
= $2,525 per month
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Then add property tax of 0.6% x $500K = $3000/yr or $250/mn
= $2,775/mn
Using taxtips.ca, if he makes $80K in BC his take home is ~$60K or ~$5/mn. $2775 is a LOT when he only has $5K/mn cause he also has to pay insurance, utilities, ... and probably has a car.
Nevermind that $100K as a downpayment is a good start, yet he'll have to set aside $10K for furniture (probably $20-30K since he's buying a penthouse) and a few $$$ for lawyer fees and closing costs, then he's below the 20% CHMC downpayment threshold and owes CHMC fees now too. Oh, and what about land transfer tax?
Sounds like someone has high expectations that need reconsideration.