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Originally posted by chittesh

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

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Chittesh,

I understand that you cannot get mortgages where the service load is more than 33% of the gross household income. The service load is diffrent for diffrent organizations, but it usually includes property taxes, mortgage principal and interest. Some companies include utilities.

BV

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Live and Let Live

Quote:

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Originally posted by chittesh

3) Take mortgage of 230K
4) Go 30 years amortization if you are <35yrs old and 35yrs if you are <30 yes old and 25 if you are >40yrs old
5) Pay 1180/1250/1360 mortgage depending on your age as shown above.

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I am a Gents and not a Ladies.

230K mortgage at 5.14% for 25 yrs = 1360 a month (if it is withing the debt service ratio just go to ING and get that rate no need to go to a mortgage broker)
5.14% is 5yr fixed.
Once should also consider putting 50% in variable rate if they are mortgaging today as the rates are projected to come down by .75 to 1% by Dec 07

I will not rent my basement unless absolutely required. I will put a bar, some exercise equipment and a large screen tv in it...

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Live and Let Live

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Originally posted by dimple2001

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.

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

Quote:

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Originally posted by tamilkuravan

Quote:

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Originally posted by chittesh

3) Take mortgage of 230K
4) Go 30 years amortization if you are <35yrs old and 35yrs if you are <30 yes old and 25 if you are >40yrs old
5) Pay 1180/1250/1360 mortgage depending on your age as shown above.

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Good analysis Chittesh.
Looks very nice on paper but will run into a lot of difficulty practicall.
for one ,I am at a loss to see how a 230K mortgage will net you just $ 1360 a month. My calculations indicate excess of $1750.
Mortgage Guru's, Please advice.
Also I am a firm beliver that any house that you buy should have a rentable basment with sep.entrance. If cost is too much, let the owner live in Basment and leave the upper floors to rent. Also partitioning of basement into many rooms for bachelors (esp. in Brampton will be a prudent idea).
TK A

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Quote:

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Originally posted by chittesh

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6) As it is not a semi but a townhome freehold, there is no maintainance and property tax+maintainance is lower. So budget 225 for tax and 225 for heating.

7) Your living cost os 1250+450= 1700$pm.

Assume you have salary of 35K and wife has salary of 35K. Each will make 1050 biweekly so its 4400pm.
4400-1700= 2700pm for lving.

Out of which:

300 insurance for you and wife, will come down as u spend more time
300 gas for 2 cars. I small car like CIVIC buy used for 8-10K putting down.
350 finance for a family car like a Camry/Accord (not new but <3 yr old)
350 groceries
400 eating out and other entertainment
300 home improvement cost (new lawnmover, saving for new TV etc)
150 cellphone, internet, house security, home phone cable
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1800
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2700-1800 = 900$ save

So i think even with that basic salary it is possible to save 900$pm. Also add the two additional weeks when you get paid 3 times a month in biweekly so you save additional 4000$/yr

As u live more in the country.salary may go up, insurance may decrease, u pay some savings in advanced mortgage and the montly amount goes down etc etc

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

You are correct it is 2150.
You are also correct i did not include CMHC cost.
However i have added 225prop tax and 225 hydero, heat in the calculation

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Live and Let Live