Is there a rule of thumb for if you make $X/year you can afford a house worth $Y?

[mike420]

@teecee Based on this I won’t be able to buy an average house in my area until I am making 200k/ year

 

[spikey4672]

@teecee Oh well that’s depressing. Guess I won’t be buying a house on my own any time soon.

 

[teecee]

@spikey4672 why do you need a whole house for yourself? why not start off with a condo?

 

[inthematrix]

@teecee So essentially 10x income if you are dual income?

 

[teecee]

@inthematrix no lol 5x household

 

[mendicant]

@kevin33 The GDS and TDS ratios are essentially this.

Don't have housing be more than 39% of your monthly income and don't have housing + other debt payments be more than 44% of your monthly income.

 

[resjudicata]

@kevin33 I’ve heard 4-5 times your income but really it depends on how much you make. Someone who doesn't make a ton spends more on essentials vs someone who makes more where extra cash past a certain point is all spending money

 

[resjudicata]

So most houses in the GTA are $1 million. So you need a household income of over $200,000 to get a townhouse in the GTA?

Fuck...

 

[storisea]

@resjudicata Well not necessarily, it would also depend on what your down payment is. For example, if you want a $1M house and you have a down of $200k, you would need a mortgage of 800k, and using the general rule of thumb your income would need to be around 175k

So yeah still pretty damn high lol. It just sucks everywhere.

 

[resjudicata]

@storisea Ah thanks, that makes sense.

 

[resjudicata]

Yes basically you have to have 2 high earnings professionals to buy a home in GTA.

 

[resjudicata]

$100k/year feels like modest salary in PFC, lol

 

[resjudicata]

Yeah this sub skews heavily towards high income earners. Which kind of makes sense as they have more money to invest. I don’t make anything close to that and neither do most Canadians.