You can plug in the numbers into an affordability calculator like this one: https://www.ratehub.ca/mortgage-affordability-calculator
In your case, you can afford about a $350,000 property.
What that will get you depends on the city.
For example, in Ottawa, you could get an older apartment condo for this price.
Great idea, but try this one instead:
https://itools-ioutils.fcac-acfc.gc.ca/MQ-HQ/MortgageQualifier.aspx?lang=eng
Completely transparent, no ads, links to policy. It matches exactly what my first mortgage broker would give me for approvals.
> Can I afford anything or should I just go duck myself?
Realistically ..... duck yourself.
The people giving you advice to yeah go buy something are overleveraged themselves. You'll lose half of your take home monthly earnings paying everything associated with owning the home (more than that if you have to pay condo/strata fees). The overleveraged in Canada (which are most homeowners) cant even buy the food or stuff they want. They are house poor. Taking their advice and you'll end up just like them.
And thats if you're lucky to find a place you are happy with that will just cost 4x your yearly salary (which is what you will qualify for), but majority of the places you will see will mostly likely be 6x - 10x your salary.
Why do you think? No good career opportunities, weather is worse than Ontario, and I’m sure the social life is terrible. (I’ve known people who went to Lakehead)
I know people who live there today. They say it has been easy to develop community and a group of friends (they’re from toronto and found people in the city cold and superficial).
They said there’s lots of green space and have been much more active (cycling daily, wet saunas, camping).
They both have government jobs, and feel they are getting great value and a decent life. They are early 30s.
I know a few people who have lived there doing healthcare work. They’re the kind of people who sky dive. They still said it was the most stressful experience they’ve ever gone through.
If your friends like it - that’s cool. But it’s definitely not for the average person.
With 50K as a down payment and an 80K salary, you could afford \~$445K based on [this home affordability calculator](https://wealthvieu.com/ccmaf?a=80,000&b=25&c=50,000&d=5&e=500). You should play with the rates + down payment or adjust for other variables to see how it impacts affordability. You will also be able to see why your monthly mortgage + gross cash left over will be based on GDS/TDS affordability rates.
My in laws just bought a nice 700sqft top-floor 1-bedroom condo on the border between Delta and Surrey, right next to transit. It was just a little over $500k. There were also cheaper units in the same building. Something like this is still a good deal and OP doesn’t have to put 20% down. Ironically, OP can get a lower interest rate and therefore a lower monthly payment with less than 20% down with CMHC.
If you live in Manitoba or Saskatchewan maybe you can get a decent starter home. Anywhere else it’s not enough. Yes it’s only a problem for younger people, we got screwed over.
Duck yourself bro. Like most of the people in this sub, you’ll eventually own a home from the fact that the evil boomers (your parents) will gift it to you. Just enjoy your life and duck your savings into something enjoyable. Canada has no real investment vehicle to keep your money safe from shrinkflation outside of real estate and it’s not your fault or mine.
Real estate is dead. The entry point is so high for first time buyers that the chances future you thinks - “Jeez, I’m happy I sunk every penny I had in to a mediocre living situation” are unimaginable.
Your first property should be Bitcoin. It’s the only asset which isn’t over inflated. It’s scarce and immutable. It will gain real value over time. It’s highly liquid, has more potential than any savings vehicle and won’t take any maintenance. In two years time when the housing prices slump, high rates are coming down, you’ll happy you didn’t try and play a game that you were never meant to win.
Stay humble, stack sats.
You can plug in the numbers into an affordability calculator like this one: https://www.ratehub.ca/mortgage-affordability-calculator In your case, you can afford about a $350,000 property. What that will get you depends on the city. For example, in Ottawa, you could get an older apartment condo for this price.
Great idea, but try this one instead: https://itools-ioutils.fcac-acfc.gc.ca/MQ-HQ/MortgageQualifier.aspx?lang=eng Completely transparent, no ads, links to policy. It matches exactly what my first mortgage broker would give me for approvals.
That’ll get you a good comfy van in Ontario. Mobile home!
Each consecutive post on this sub is lower effort.
Majority of the subs users take that method and apply it to their entire lives, just to report back here how bad everything is lol.
How about your comment? How much effort would you rate that
18
Agreed
> Can I afford anything or should I just go duck myself? Realistically ..... duck yourself. The people giving you advice to yeah go buy something are overleveraged themselves. You'll lose half of your take home monthly earnings paying everything associated with owning the home (more than that if you have to pay condo/strata fees). The overleveraged in Canada (which are most homeowners) cant even buy the food or stuff they want. They are house poor. Taking their advice and you'll end up just like them. And thats if you're lucky to find a place you are happy with that will just cost 4x your yearly salary (which is what you will qualify for), but majority of the places you will see will mostly likely be 6x - 10x your salary.
Windsor, Ottawa, London, Thunder Bay. Lots of options.
Thunder Bay? Lol
What’s wrong with Thunder Bay? It’s currently ranked the most affordable city in the country.
Why do you think? No good career opportunities, weather is worse than Ontario, and I’m sure the social life is terrible. (I’ve known people who went to Lakehead)
I know people who live there today. They say it has been easy to develop community and a group of friends (they’re from toronto and found people in the city cold and superficial). They said there’s lots of green space and have been much more active (cycling daily, wet saunas, camping). They both have government jobs, and feel they are getting great value and a decent life. They are early 30s.
I know a few people who have lived there doing healthcare work. They’re the kind of people who sky dive. They still said it was the most stressful experience they’ve ever gone through. If your friends like it - that’s cool. But it’s definitely not for the average person.
Just curious, why was it stressful?
Fair enough. I’m glad they are living fulfilling lives
With 50K as a down payment and an 80K salary, you could afford \~$445K based on [this home affordability calculator](https://wealthvieu.com/ccmaf?a=80,000&b=25&c=50,000&d=5&e=500). You should play with the rates + down payment or adjust for other variables to see how it impacts affordability. You will also be able to see why your monthly mortgage + gross cash left over will be based on GDS/TDS affordability rates.
My in laws just bought a nice 700sqft top-floor 1-bedroom condo on the border between Delta and Surrey, right next to transit. It was just a little over $500k. There were also cheaper units in the same building. Something like this is still a good deal and OP doesn’t have to put 20% down. Ironically, OP can get a lower interest rate and therefore a lower monthly payment with less than 20% down with CMHC.
You could buy a parking stall in Vancouver! Wait… those are like 125k now.
Bought a 3 bed room in brantford Ontario for 300 mortgage Lower than my rent
If you live in Manitoba or Saskatchewan maybe you can get a decent starter home. Anywhere else it’s not enough. Yes it’s only a problem for younger people, we got screwed over.
Yes just a problem for new people, everyone who owns property is happy with the new higher prices
I own and disagree
What? That housing affordabitiy has deteriorated rapidly over the past few years? Ok...
Untill mortgage renewals hit
Wait 2.5 years. Big 5 are seriously over leveraged.
a) move to manitoba b) put all of your savings in apartment reits (rental not commercial) this is not financial advice
We laugh, but one day we'll realize Saskatchewan was the one to boom.
xeqt veqt vfv hxs better than all in apartment reits.
Duck yourself bro. Like most of the people in this sub, you’ll eventually own a home from the fact that the evil boomers (your parents) will gift it to you. Just enjoy your life and duck your savings into something enjoyable. Canada has no real investment vehicle to keep your money safe from shrinkflation outside of real estate and it’s not your fault or mine.
You can buy an apartment condo in Calgary, if you hurry.
How about wait a few years once you saved more?
At which point housing price may have risen even more to the extent of obliterating the savings accumulated over the extra years.
Bro, what are you saying? Housing will crash soon. They’ve been predicting it in this sub for a while now. Evil landlord.
Real estate is dead. The entry point is so high for first time buyers that the chances future you thinks - “Jeez, I’m happy I sunk every penny I had in to a mediocre living situation” are unimaginable. Your first property should be Bitcoin. It’s the only asset which isn’t over inflated. It’s scarce and immutable. It will gain real value over time. It’s highly liquid, has more potential than any savings vehicle and won’t take any maintenance. In two years time when the housing prices slump, high rates are coming down, you’ll happy you didn’t try and play a game that you were never meant to win. Stay humble, stack sats.