Housing Loan

[Aspirant_CAN]

What is the minimum yearly income required to apply for a home loan in the province of Ontario.
Here I am aiming for a flat / appartment.
Thanks

 

[steaky]

Go to the mortgage calculator of a bank website (such as hsbc) and you can know how much you can afford.

 

[Tri-Cities]

@steaky
Good one.
Even though you're right I can't stop thinking that way too many people "own" houses they simply can't afford (even the bank says they can). Lool

 

[Rossei]

@steaky
Good one.
Even though you're right I can't stop thinking that way too many people "own" houses they simply can't afford (even the bank says they can). Lool

Partly because most Banks think one can pay up to 43% towards his mortgage of his gross income which is insane to me.

For example, if you make 100k/yr (roughly 8k/mo), the bank will allow you to buy a $700,000 house (estimating $500/mo mortgage payment for every $100,000 borrowed). :-X

 

[anujoshi]

You can check on a bank's website to see your affordability for a house loan/mortgage. TD Bank has one online: https://tools.td.com/mortgage-affordability-calculator/

I would recommend speaking to a representative in person about it. Let me know if I can help in any way!

 

[arunsgirl]

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.

 

[Rossei]

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.