Quote:
Originally Posted by bizaro86
Using that income for a couple, (work out to 7969/month gross), $450 per month in other debt payments, $200 property tax, $100 heat, and 3.5% interest rate and 30 year amortization, CMHC's affordability calculator indicates that a mortgage of $502,658 would be fine. So if the average calgary couple can more than afford the average Calgary house prices are probably not too bad.
Obviously the other numbers are just estimates, but I tried to make them reasonable ($450/mo in other debts, etc).
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What you can be approved for, and what you can actually afford are not the same.
My fiancée and I are 24 years old. Using your same numbers for heating, property taxes, debt payments, interest rate, and amortization, but using our gross income, CHMC says I can afford a $780,000 house if I bring $40,000 as a down payment. There is NO way we could afford anything close to that.