If you are willing to get a 100-200k down from your parents you’re in. If you have old equity from another house you’re in. If you have a 100k down and you are a hedge fund manager you are in. Everyone else no way. The median income in Canada is around 70k a year. Even if you have two people making that money that gives you 140k. Add in a car payment and maybe a student loan and you my friend qualify for 350-400k. Tell me what you can buy with that? Absolutely nothing! That’s the math people are using. Plain and simple. That’s why people say they can’t buy anything.
It’s much more than being defeated. The question is does anyone want to be a slave to their mortgage for 30 years, and is it worth it considering if home prices don’t drop to an affordable level the price will most likely stay flat for 10 years or until wages catch up to an affordable level.
Last thing. My wife is in staffing and job placement and making 70k a year is someone that has been in the labour market for about 10 years. Let’s all get this straight this is dream land.
The only way you can afford a house now is if you are a couple and you both make 150k each. If you are single and have a normal "well paying job" like programmer at Microsoft like I was, you can forget home ownership.
A house is not the type of structure that exists, for someone to live in. I lived in houses most, or maybe all of my life, and I am planning on changing how I live. I am a renter, and I planning on buying property, but not a house. I been working on the legal paper work, for a while to buy property. Building a home from scratch has different results than buying a prebuilt home. I saw some people building their homes, and as they build their budget is able to match each step, for building their homes, and this is not the same issue as buying a prebuilt home in Ontario. A lot of people do not have hundreds of thousands of dollars, or around $1 million, or more to buy a prebuilt house, so as home owners continue to want, so much money then finding buyers might be, or become more difficult. Because prebuilt houses are expensive to buy. Leaving Ontario is a suggestion that I am happy to make. I think to live anywhere else besides in British Columbia, and Ontario might be more realistic, for Canadians.
This falls on deaf ears. I am in the top 15% of income 100k+ and i have almost 450k for down payment which gives me about 850k to play with that give me only 800k for sticker price, which to my amazement buys be a lot less then what i thought. If even i find it difficult which it is. I would hate to see what the average person who didnt win the lottery has to deal with.
I have a question? If you have life insurance, are you able to waive the mortgage insurance? This is what my husband and I did when we bought our first home (in Alberta) 6 years ago. We only put down 15% but I remember we didn't need to pay the CMHA insurance because we both had life insurance that would cover our mortgage if one of us died. Is this still a thing?
If marriages today last less than 5 years on average, doesnt the lending institution take that into account when qualifying someone for a mortgage? The example you mentioned is of someone earning $100,000/yr not approved. Their spouse makes $40,000/yr, now they are approved. Spouse leaves the relationship, a forced sale or default
As a Punjabi man, I had no problem qualifying for a mortgage. Once the major commercial bank granted me a mortgage, they were happy to learn I am renting to 12 Punjabi international students. Its a guranteed income stream for the bank. Everyone wins! (Except Canadians.)
I don't understand why someone who has 20% down would pay more interest? This seems backwards. Even if you are a 2nd time home buyer? Isn't the whole point of having a greater down payment so you can get a better rate?
Exactly, it doesn't make any sense. There's less risk for the bank with 20% equity, they can always recover the balance of the mortgage by selling the home. From what i understand, once you put 20% down, the bank is not able to insure the mortgage, hence even though you're putting more down, they're not able to insure the mortgage.
If you are willing to get a 100-200k down from your parents you’re in. If you have old equity from another house you’re in. If you have a 100k down and you are a hedge fund manager you are in. Everyone else no way.
The median income in Canada is around 70k a year. Even if you have two people making that money that gives you 140k. Add in a car payment and maybe a student loan and you my friend qualify for 350-400k.
Tell me what you can buy with that? Absolutely nothing!
That’s the math people are using. Plain and simple. That’s why people say they can’t buy anything.
It’s much more than being defeated. The question is does anyone want to be a slave to their mortgage for 30 years, and is it worth it considering if home prices don’t drop to an affordable level the price will most likely stay flat for 10 years or until wages catch up to an affordable level.
no thanks keep renting and fill your bank account the rest is slavery
Last thing. My wife is in staffing and job placement and making 70k a year is someone that has been in the labour market for about 10 years.
Let’s all get this straight this is dream land.
Enjoyed this, super insightful!
Awesome, thank you!
The only way you can afford a house now is if you are a couple and you both make 150k each.
If you are single and have a normal "well paying job" like programmer at Microsoft like I was, you can forget home ownership.
Single is almost impossible
@@dianeneto yep which shouldn't be the case. ever.
And that is why mortgage fraud is big business. Uber drivers are buying $1 million dollar homes.
Fantastic info . Especially about a line of credit.
Pro tip
Lease a 800k place for 3k
Next year when it's 400k look to make a low ball offer of 350k.
It's called shoring the housing market
Aren't you supposed to add 2% to all those rates to qualify for a mortgage? Which is called the stress test!
A house is not the type of structure that exists, for someone to live in. I lived in houses most, or maybe all of my life, and I am planning on changing how I live. I am a renter, and I planning on buying property, but not a house. I been working on the legal paper work, for a while to buy property.
Building a home from scratch has different results than buying a prebuilt home. I saw some people building their homes, and as they build their budget is able to match each step, for building their homes, and this is not the same issue as buying a prebuilt home in Ontario.
A lot of people do not have hundreds of thousands of dollars, or around $1 million, or more to buy a prebuilt house, so as home owners continue to want, so much money then finding buyers might be, or become more difficult. Because prebuilt houses are expensive to buy.
Leaving Ontario is a suggestion that I am happy to make. I think to live anywhere else besides in British Columbia, and Ontario might be more realistic, for Canadians.
Time to leave Canada folks
This falls on deaf ears. I am in the top 15% of income 100k+ and i have almost 450k for down payment which gives me about 850k to play with that give me only 800k for sticker price, which to my amazement buys be a lot less then what i thought. If even i find it difficult which it is. I would hate to see what the average person who didnt win the lottery has to deal with.
I have a question? If you have life insurance, are you able to waive the mortgage insurance? This is what my husband and I did when we bought our first home (in Alberta) 6 years ago. We only put down 15% but I remember we didn't need to pay the CMHA insurance because we both had life insurance that would cover our mortgage if one of us died. Is this still a thing?
No fundamentals to support these prices, price declines will continue to follow for quite a while
Cost of building alone will keep costs higher than i know you believe they should be
If marriages today last less than 5 years on average, doesnt the lending institution take that into account when qualifying someone for a mortgage?
The example you mentioned is of someone earning $100,000/yr not approved. Their spouse makes $40,000/yr, now they are approved.
Spouse leaves the relationship, a forced sale or default
Great program.
600k 'thats a shitty, crappy townhouse' in Barrie, lets see in a year 🤔
You get what you vote for.
I pay for leaders insurance is classic..next their lunch bill..??
Lenders Pay your own goddamed insurance premiums.
What if I don't have a working partner.
You need to make alot of money then. I am in the same boat
It’s brutal
As a Punjabi man, I had no problem qualifying for a mortgage. Once the major commercial bank granted me a mortgage, they were happy to learn I am renting to 12 Punjabi international students. Its a guranteed income stream for the bank. Everyone wins! (Except Canadians.)
You beat mark uploading today:)
I don't understand why someone who has 20% down would pay more interest? This seems backwards. Even if you are a 2nd time home buyer? Isn't the whole point of having a greater down payment so you can get a better rate?
Exactly, it doesn't make any sense. There's less risk for the bank with 20% equity, they can always recover the balance of the mortgage by selling the home. From what i understand, once you put 20% down, the bank is not able to insure the mortgage, hence even though you're putting more down, they're not able to insure the mortgage.
Your calculator is garbage, the closing costs are much higher! There is no such thing as a $300 appraisal!
That's not MY calculator. It's ratehub.com that the professionals use.