In a recent Bank of Montreal survey, a First-Time Homebuyer is 29 years old and has saved a $48,000 down payment for a $300,000 home purchase.
Who fits this profile?
If you fit this average, it will take an annual household income grossing $40,000 per year (earning approximately $20 dollars full time and past your probationary period). If you are self-employed, this $40,000 income would have to be your net income based on at least two years of tax returns.
What if you don’t fit the average?
Lots of young Canadians find it next to impossible to save $48,000 for a down payment. Instead, they may be able to scrape together a 5% down payment ($15,000 using the $300,000 purchase price example) with a combination of savings, RRSPs and a gift.
You still have options – Your gross annual income needs to be: $50,000 – Your monthly mortgage payment with today’s average rates will work out to: $1,370
What can you buy?
Here are examples of over 800 homes within 45 minutes of Vancouver that are all 2 bedroom, 2 bathrooms with insuite laundry: http://rboies.mlslink.mlxchange.com/?r=903314772&id=363434333136.312
Home ownership comes with other expenses as well, including maintenance fees (condos/townhomes) and taxes which range from property to property. When you look at the fundamentals apparent in your personal scenario, home ownership may be easier than you think!
Angela Calla, AMP Dominion Lending Centres-Angela Calla Host of ” The Mortgage Show” Saturdays @ 7pm on CKNW AM980 Phone : 604-802-3983 Fax: 604-939-8795 Email: firstname.lastname@example.org www.angelacalla.ca