Income needed for a house of $500,000 in Canada

[@dontlookbackwards]

People will have to accept reality that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Sure I'm not alone in my chain of thoughts, I look towards the stock market to fuel my FIRE goal at this point.

[@LaurenGilmor]

after studying the trajectory of great assets like real estate, dividend paying stocks and gold, my conclusion is to buy and invest in what you can afford today! working with a financial planner can certainly help

[@JamesWillock]

No doubt, financial planners are the ideal reps for asset allocation, and straight-up! that’s how I’ve stayed top for 5 years, amassing nearly $1m after subsequent investments to date. IMO, home prices will need to fall by at least 40% before the market normalizes.

[@generosityliveson]

@@JamesWillock real estate prices exploded, interest rates exploded, but my wage the same, i'm screwed.. who is the professional guiding you if you dont mind me asking please?

[@JamesWillock]

Can't share much, 'Katherine Nance Dietz' is the brain behind my portfolio success. She's an extremely intelligent advisor, very experienced, resourceful, and offers an exemplary service, you can research her if you like.

[@fromthebirchwood]

thanks for sharing! came across Katherine Nance Dietz site just after inputting her full name on my browser, she seems impeccable !

[@rnancy4218]

NEVER EVER EVER DO AN ADJUSTABLE RATE!!! An adjustable rate could make your mortgage change where its unaffordable and you can lose your home

[@chris.jauslin]

All products are suitable for a specific client and circumstance. They are there for a reason. You need to go through a suitability assessment before choosing

[@alialrikabi5546]

In canada 5 years adjustable is normal, they don't have 30 years fixed like USA

[@fi-train8961]

In Australia and many countries you have no choice sadly

[@roberamitiku8524]

@rnancy4218 not always true. If I buy a house now and I think the interest rate will go down in the next 5 years it would be good to have adjustable rate.

[@ImtihanAhmed]

Great video, I was shocked the payment seemed so low then I realized this was before the interest rate hikes. Things are much less affordable now 😢.

[@chris.jauslin]

Thanks Imtihan, yes good that you caught that. Things are a bit more stressful now. Are you in the market for a property?

[@ImtihanAhmed]

@@chris.jauslin planning for something near the end of the year so just keeping up with the market for now. Know anyone based in Calgary?

[@weaselsoup3105]

I just thought the same thing. I have a family income of 105 and can only get 378

[@ImtihanAhmed]

@@weaselsoup3105 That seems weirdly low, are you looking at high ratio?

[@theresahosei-os2gd]

Thanks that’s helpful

[@motivation_fire866]

Mindset is everything 👋

[@DjDiemonte]

So does that mean everyone is buying on the B side pretty much ? With flexible gds tds ratios ? Can you make a video on that

[@RATMCU]

This is very wrong, for a 500k you'd need more than that, at least 110k, since the stress test!

[@chris.jauslin]

This post is from a year ago. It’s not too far off nowadays btw.

[@musicotensai]

@@chris.jauslinnot even close. Need $130k income

[@chris.jauslin]

@@musicotensai this post is from 9 months ago. Other context

[@consolegamerz3856]

This is a trap , so buy the cheap and small house on cash and then upgrade your self by time

[@schmo7777]

Now the same payments would be 2700

[@flabberGiSTed]

We have a family income of 170k and can’t still buy a place in Vancouver 😭😭😭. We honestly just give up and save for the kids education.

[@balkaranbasra7097]

No way

[@ironberg3493]

Ok first of all, it's the Bank of Canada that will be announcing on July 13 a change in the interest rate, not the government of canada. These are two separate entities. Second, why would you buy a house with a variable rate when interest rates are expecting to rise further and further due to highest inflation in 30 years. Do you know what a trigger rate is? Once rates get to a certain point, your monthly payments will go up and less of your payments will be going towards the principle. You'll also have some more years added to the amortization period. On top of that, housing is on a downward trend and higher rates impact prices so not only will your payments go up to the point where you may not afford it depending on how much BoC hikes rates, but you might also have an underwater mortgage. I have no idea why anyone would listen to this terrible video and FOMO in to lock in variable rates. It's completely insane.

[@chris.jauslin]

1. Government of Canada manages monetary policy through the bank of Canada (terms are used interchangeably) 2. A variable mortgage can be a great idea on the current environment because the fixed rate is 2.00% !! away, still. Also gives you the benefit of a very low penalty if you break in about 2 or 3 years to change your product strategy. Also you have a static payment. Extended amortization is irrelevant as you have prepayment privileges hence you can pay extra if you have the capacity and your Am will remain unchanged (BUT what is important is to have the insulation of a lower penalty during crisis). 3. Housing is on a downward trend, yes, I do not necessarily encourage buying, but people are renewing their mortgages and refinancing. Also, contrarians are taking advantage of this market by buying low. Underwater mortgage, you'll have it regardless of product taken if you don't have the capacity of coming up to equilibrium. // Strategy is the name of the game. You have to adjust based on the current situation.

[@reefermadnesss]

​@MortgageHero this comment aged beautifully ! 🤣🤣🤣

[@ironberg3493]

@MortgageHero what are your comments on the market now Mr. "Mortgage Hero". Were variable rates really a good idea at the time?

[@RM-ub1xd]

@@reefermadnesss 😂😂😂 I mean it’s good to get different opinions but at the end of the day all the experts in economics,real estate and brokerage don’t have a clue. Not even the banks know themselves. I would take any advice with a grain of salt and do what’s right for yourself and family financially because at the end of the day the money is coming out of your pocket not theirs. Remember the banks said that interest rates will stay low for a very long time😂. Everyone is a crook.

[@noah-mg2vy]

But where are you going to buy a 500k property? A condo in a b tier city? Then don’t forget maintenance fees.

[@taralynnhoffmann5831]

You would need to be earning more than that. On a 96k gross income in Quebec, I was coming home with about 900$ per week. If your mortgage alone is over 500$ per week, you arent going to be able to pay your other bills, gas and groceries. Unless maybe you are single without any kids. In which case life would be pretty boring because you wont be able to afford to get out of that house.

[@chris.jauslin]

This scenario was done under policy at the time of posting with prevailing market rates and stress test. I’m a mortgage broker

[@paypalservice7857]

@@chris.jauslinHey, I’m in one of the cheaper provinces in Canada right now, I have 20% down payment of a 700k house ready, but I don’t have proof of income since I just moved back to Canada last week, is there any way I can be approved for a mortgage? Is there any way the bank wouldn’t need proof of income? What’s your number so we can talk? Thanks

[@chris.jauslin]

you can get a more flexible mortgage now and refinance in a year . call me 416-727-1014 @@paypalservice7857

[@devinnore]

Banks are stingey now more than ever, i make around $2600 a month 680 credit score, with a 200k down payment i was only approved for 85k with a 30 year amortization... So apparantly i can only afford a $300-400 a month mortgage now... 8 years ago i was making $1800 a month, i had a 20k deposit ready with a 720 score, i was approved for 120k 25 year amortization. Banks just want to leech a reliable amount for as long as they possibly can.

[@appmania2180]

Is the income requirement gross or after tax?

[@3vpme2]

He’s not wrong I own a pickup truck and I have a 35k down payment as of right now and the truck is a hampering issue it’s really annoying because I can afford a 2k mortgage easily with the truck but they do not see it that way oh well

[@carloeramos]

How about 50% downpayment?

[@YahyaMarei]

Have you noticed all talk about 500k? There are no 500k. The cheapest is 1m. But it's a mind game. The real estate agents want commission; they don't want to help you.

[@chris.jauslin]

Well, not sure where you are located but there are plenty of properties in the 500k range. Including the GTA. Besides you have all the other provinces. I can team you up with a real estate agent if you want. Let me know.

[@chris.jauslin]

@Ron Listhaeghe thanks

[@thalescardris812]

Lmao, like the whole Canada is Toronto... Montreal is almost half the price

[@craignorman30]

Awful advice, now your monthly payment is $3,095.78

[@chris.jauslin]

That video is from 7 months ago

[@harrygorayamusic]

nobody give house in 5% everybody say give maximum 20% of 5,00,000 with 1,10,000 annul income 😂

[@daiseman]

Please tell me where I can buy a detached in GTA for $500k lol. Maybe one day...

[@chris.jauslin]

Did you just thought I referred to a detached? There’s plenty of properties in that range. Unlikely detached though. If you set yourself for that kind of expectation, there you’re in for huge disappointment my friend.

[@anneonnamouse5496]

Move away from the GTA 😂

[@cyruskaraAdventures]

I'm curious, are there still homes under 500k that is not a studio condo in gta? usually prices are listed 500k or something but ending up 250k over asking because sellers wont take their listed price.

[@chris.jauslin]

There are plenty of homes across Canada in that price range

[@ImtihanAhmed]

In the GTA there aren’t many. You’d have to go up to 7-800k for even an old run down townhouse.

[@chris.jauslin]

@@ImtihanAhmed not many but there are

[@613Builds]

👏🏽

[@jmc8076]

Canada: •if dp less than 20% of home price must buy mortgage loan ins = 0.6% to 4.50% of mortgage - depends on dp •If self-employed or poor credit history/credit score lender may req larger dp and or added mtg loan ins •Canada must disclose any ‘gifts’ for dp (don’t try to hide) •home price over $500K dp = $35K Add: •agent and legal fees •moving costs •initial updating costs in first few mths (paint, cleaning, furniture etc) Ongoing: •maint fees (1% -5% depending on age or HOA if condo/town house) •property and or content ins •property taxes •replace any big appliances •etc

[@chris.jauslin]

Thanks for the assistance. Some statements a bit off, but that's a good effort. Well done.

[@branttrainstation]

where can you find a house for 500,000 in Canada

[@chris.jauslin]

Niagara, Hamilton, Oshawa, Welland, Barrie, etc, etc etc. that’s only Ontario. You have the rest of Canada

[@chris.jauslin]

@@branttrainstation hamilton mountain is more expensive for sure. I can connect you with a realtor in our team if you want,

[@musicotensai]

@@chris.jauslin he said a house not a condo

[@chris.jauslin]

@@musicotensai house, that’s correct.

[@nickgood1000]

Tell me where is that house at 500k.

[@phylykxhoang7452]

Anywhere that's not toronto or a major city😂😂

[@haribolee7366]

How is DownPayment 5%…? Isn’t it 20% usually…? Can Anyone explain how to have 5% upfront? I’d like to know so I can do that

[@chris.jauslin]

In Canada you can put 5% on the first 500k + 10% of the remainder (property value wise). If the property is 1MM and up, you need 20% downpayment; if it's an owner occupied property. Investment properties require 20%

[@jmc8076]

For Canada see my comment.

[@jmc8076]

Canada: •if dp less than 20% of home price must buy mortgage loan ins = 0.6% to 4.50% of mortgage - depends on dp •If self-employed or poor credit history/credit score lender may req larger dp and or added mtg loan ins •Canada must disclose any ‘gifts’ for dp (don’t try to hide) •home price over $500K dp = $35K

[@DANT-E]

5 year adjustable variable... i have some magic beans for sale

[@chris.jauslin]

?

[@jmcg5838]

Plus $15,000 in closing costs and land transfer taxes

[@chris.jauslin]

1.5% closing costs. $4,000 land transfer tax rebate if first time home buyer

[@jmcg5838]

@@chris.jauslin not in Toronto.

[@chris.jauslin]

@@jmcg5838 In tToronto you have provincial and municipal LTT rebate

[@jmcg5838]

@@chris.jauslin If you are advising people to buy in this falling market with 5% down then you should not be in business.

[@chris.jauslin]

@@jmcg5838 your arguments change by the minute when I proof you wrong. Also this post is from 5 months ago. Besides you have no insight whatsoever when saying that 5% is a bad idea in this current market? What’s your rationale? Depreciation? That’s all? There’s so much more than that. Make your point and explain your comments. Don’t just come here and make an unfounded and unsourced comment. I have been in this business for 15 years and I know a thing or two.

[@killdeerperiland3303]

and the house had to be near the place you have been making money.

[@rasenshuriken6431]

You forgot closing costs ...

[@chris.jauslin]

“Income needed”. do you need the closing costs ?

[@-TheMaskedMan-]

Why not make a video on “What is happening on july 13th” in canada’s housing market. I want to know. Why did you say this in this video???

[@chris.jauslin]

The variable rate will likely go up in the next revision. We are estimating 0.75%

[@reefermadnesss]

No 500k houses is the problem.

[@chris.jauslin]

depends where. 3 clients this month alone bought for less than 500k

[@chris.jauslin]

@@noahg825 I can set you up with a Realtor, let me know

[@anthonygioia9728]

Don't think these stats are fully legit, I just bought a house at $510,000. The dp was correct however the income required you stated is insanely incorrect

[@chris.jauslin]

If you live in Canada these numbers were 100% correct at the time of posting. I'm a mortgage broker btw.

[@chris.jauslin]

Also don't pretend all files to be the same. If you had debt on file then your income needs to be higher.

[@anthonygioia9728]

@@chris.jauslin just thought that wasn't very clearly said then... you made it sound like no matter what you need that income which is terribly false

[@chris.jauslin]

@@anthonygioia9728 If you watch the video carefully i did state to make the assumption of no debts or obligations in the background

[@anthonygioia9728]

@@chris.jauslin yeah thats exactly what I mean...

[@mrugennaik534]

Oh another video saying this might be the last chance to get the house you want. Lol

[@chris.jauslin]

Neve said that. But I agree. These are the last years where people will be able to buy. I have been following trends and indicators globally, and markets like GTA or even Canada eventually turn into rental and luxury Markets.

[@chrisdafos8365]

$2077 a month on a 475k mortgage?? Please be honest pal and know wtf you're talking about before posting.

[@chris.jauslin]

This post is from a year ago. 4.5% ago. Please check the date of the source before commenting. Thanks!

[@keanupereira4775]

Number 1: Don't buy a property in Canada

[@stephenfermoyle4578]

we all know ok? you a the million agents out there have all told us ..get a life

[@chris.jauslin]

What’s wrong with you dear? Everything ok ?

[@SatClub403]

Houses cost more than that now