Hi,
Without going into actual number can people in the forum tell me what percentage of their montly income after tax they spend on Mortgage+maintainance+property tax. Also can you let me know if you are a single family household or Dual (Husband+wife work) or more.
e.g if family makes 5000$ after tax per month and if your mortgage is 2500$ and 2 people work then you can answer as
50%, 2 incomes
or if you make 5000$ and you are single income and have mortgage of 1000$ then you can reply as 20%, 1 income

I really dont want numbers, so if you are willing to share information in the above format it will help me understand the general trend among desis here..

thanks
Chittesh

-----------------------------------------------------------------
Live and Let Live

Chittesh,
Nice question to the forum.
I am also looking for answers to your question but for the opposite reason. I want to convince my mind that it is not worth paying mortgage for my situation in Canada.
Thanks for people who reply.
TK A

-----------------------------------------------------------------
I am a Gents and not a Ladies.

It will be a great service to all the Home buying CD's, if current home owners can shed some light on Q's by chittesh.

1) It would help CD's set aside a budget during home buying process.

2) Also help current home owners compare and see if you have got the wrong end of the stick

I was surprised to hear that the wise TK has not purchased a home yet..maybe there is a lesson here for all of us..

seenappa

Ciittesh,
After thinking more on your post, would it not be better if the reword their answers like this :
Please reply to only what you want CD's to know :

1. Type of house : Condo, Townhouse, Semi, Detached
2. Price bought :
3. Rent income : From basement / partial renting
4. Mortgage :
5. Insurance, Hydro, Misc. expenses :
6. Maintenance charge (for Condo's / Townhouses only)

Now this will enable the viewer to do his own math and decide which type of house is suitable for him. We all know how much our monthly expenses are and how much max. we can set aside for mortgage.
for e.g. :
In my case I am paying $900 (total) to rent a basement apt. and every month I am around -$200 loss. Now when i did my math (with 10% down), i came to the following conclusion. (remember that in 2003 for every 100K of loan the mortgage was $675. Now with the increased rates of Interest, I am assuming $775)

Senario 1 : A Condominum worth $125K and i put 25K as down payment :

Mortgage : $775
Maintenance : $ 500
Hydro and Insurance : $100
Property tax : $75

Total : $1450 a month

Senario 2 : A lease hold town house in Mississauga for $250K. I put 50K as downpayment :

Mortgage : $1550
Maintenance : $ 250
Hydro and Insurance : $100
Property tax : $100
rent from basement : -$600

Total : $1400

Senario 3 : A detached or a semi detached house for $350K. I put 50K down.

Mortgage : $2325
Maintenance : $ 0
Hydro and Insurance : $100
Property taxes : $150
Rent from basement : $800

Total : $1775 (all monthly)

Guru's : Please correct me if i am wrong.

TK A

-----------------------------------------------------------------
I am a Gents and not a Ladies.

This question applies more to new immigrants rather than people who have been here for 7-8 years. If you are decently educated, lucky and have been here for 7-8 years you and your spouse can make approx 3000-3500pm after tax.
Thats 6K to 7K per month, given its 6k also and you take a 2500$ mortgage, and you have atleast 100K of equity in your current home..
2500$ will get you 400K easy and 100K means a half mil dollar home, which is only a dream for a new immigrant.

For a new immigrant a family income is typically 3K to 4.5K.
The cheapest town/semi in brampton will cost 280K and for a new immigrant 20k down is a big deal.
So a mortgage of 260K means 1600$ + 250 prop tax + 200 maint means 2050 which is almost 50% and sometimes over 50% in most of the cases.

Someone here for a long time making 7K.month can spend 50% in mortgage as they have 3K-3.5K for living expense which is good.
For someone making 3.5k if mort+tax+maint is 2050 you have 1.5K for living which is ok.

The problem arises for people where there is 1 working person and family income is lower. It is typically 2.5K to 3K per month and then 2050 for house itself makes life hard..

so i want to know what people are typically doing...

-----------------------------------------------------------------
Live and Let Live

A established RE broker told me that home prices went down by 1% last month in GTA.

Still Homes are a very good ivnestment. If you aggressively invest in stocks and mutual funds you pay 50% capital gains tax.

A house will go up and if its ur primary home you sell it and dont have to pay tax on the gains made.

If there were no (<20%) capital gains tax..i would NEVER invest more than 10-15% of my income in a home.

-----------------------------------------------------------------
Live and Let Live

I spend 20% of our household after tax income on mortgage. Ours is a dual income. The 20% includes mortgage, taxes and any mortgage insurance.

Does not include home owner's insurance which is about $400 a year. Does not include any utilities or maintenance.

Please do not take the percentages posted in this thread as a gospel. You will have to look at your affordability, lifestyle, requirements, other debts and obligations and then decide what percentage is good for you.

-----------------------------------------------------------------
Dimple2001