arunsgirl said:
If you only have 5% downpayment, 70 thousand a year income would be the bottom line in my opinion. You can get a mortgage with less income a year but you will be too exposed to any changes in the economy. If you are able to do more than 5% downpayment minimum income that will buy you something in the GTA is about 55 thousand. Under that, you are on thin thin ice. It is doable with less but you'd have to buy way out there and be very disciplined with your lifestyle.
Let's see.
$55,000 - (Income Tax+CPP+EI) = $40,000
$40,000 yearly is $3300 monthly.
I don't think you can find a house in Toronto that's less than $500,000 (small condos can be cheaper). If one can pay 10% down, he is borrowing $450,000 from bank. That's roughly $2300 monthly payment towards mortgage for 25 years. Account for property tax, utility bills, home insurance and maintenance which is perhaps another $500 - $700 monthly cost.
You will be left with $300 for your food, clothing, phone/internet, transportation etc. etc. God forbids, if you have a car in Toronto, that $300 will be gone right from your checking account for your car insurance.
Personally, I wouldn't dare to buy something in Toronto with less than 100K salary.
