Should I Buy a Condo/House?

[Manhattan]

Hey fellow beyonders, really need any advice I can get on this. I'm pretty desperate here.

I just finished my degree and will be moving out on my own. Rent in this city is frickin ridiculous so I would really like to buy either a condo or house so I dont have to throw away money on rent every month. I also look at it as an investment. But I only have about 10 grand to put down for a down payment. Plus, I only make around 40k a year, for now anyway. (Hoping it'll double in the next 4 years.)

Am I going to be able to get a mortgage with what I'm making? I'd really like to get a condo around downtown near my work or at least something near the C-train. I know this is an extremely general question but hey, ya gotta start somewhere.

[rc2002]

Price to rent ratios are high. You'll be able to afford a place more easily by renting.

If you can somehow get approved for a decent sized mortgage, some roomates would definitely help out.

[lastskpirate]

Originally posted by richardchan2002
Price to rent ratios are high. You'll be able to afford a place more easily by renting.

If you can somehow get approved for a decent sized mortgage, some roomates would definitely help out.


yah this is true...with the average price of homes around $400,000, this would be a hefty mortgage without a decent down payment. there is always the possibility of getting a family member as a co-signer which would probably increase the likelyhood of getting a mortgage

[Weapon_R]

It's going to be challenging to get approved at that income for a decent mortgage. Of course, credit and debt ratio come into play, but theres only so much that you'd be able to afford, and nothing I can think of in downtown.

[Mixalot27]

Go to this link and input your numbers. It will tell you approx how much of a mortgage you can get (from RBC anyway).

http://tinyurl.com/2yn77x

Then hit up mls.ca and see if you can find any decent properties in your price range.

[SikAssR1]

10 g's down and making 40,000/yr, sorry man but if your looking for something near downtown, it;s not going to happen. Even with a 200,000 mortgage @ 35 years your monthly mortgage payments are going to be approx. 1100-1200.

[Takemetoothemoo]

It’s going to be hard to find, if you have someone buy it with you that would help.

My mom is a realtor, she has a couple condos listed right now PM me she could help you find something.

[R-Audi]

Your best bet is to talk to your bank.. you should qualify for a CMHCC (I think its called) for first time buyers, and you only have to put 5% down. You may however need someone to cosign if they are willing. There are a few around DT around the 200 mark.. IMO you cant put a price on not having to commute everyday. Yeck! a 15 minute walk is much better!

[bigboom]

Like R-Audi said there are quite a few condos in the core that are around the $200K mark, they are smaller but at least its something you can put some equity into if you are bullish on this real estate market.

I think with a $40K salary you can afford $200K you'll just have to ease up on some luxuries of life.

[bulaian]

Do you have someone that can cosign with you?
How long have you been at the job? or you temp or on probation still, or permanent?

[HRD2PLZ]

I would talk to a mortgage broker. Banks are okay for routine applications, but on anything that differs from the norm I find that a Mortgage Broker has much more access to different lenders who generally have a wider lending criteria.

In your range though, your going to be looking more towards a condo. Which is still a good investment :thumbsup:

[Weapon_R]

I can't think of any condos in the low 200k mark anywhere near DT, and if they are you also may need to make sure that they are CMHC eligible.

Get your foot in the door. That's the key. Once you do, you'll be able to build appreciation fairly quickly in this market, and get something better in no time.

[nos_efx]

Yes you would require someone to cosign the mortgage with you at 40k a year. Already half of your income after taxes is going to the mortgage plus another 200-300 (higher as you enter the core) for condo fees. this would leave very little for car payments, food, furniture, cable, etc.

Don't stretch yourself too thin, just wait until you are ready even if this means paying a bit more later.....

I've got a few friends who jumped into the market just a bit before the huge price jump and weren't quite ready financially, they've been paying for it for the past year....



Originally posted by SikAssR1
10 g's down and making 40,000/yr, sorry man but if your looking for something near downtown, it;s not going to happen. Even with a 200,000 mortgage @ 35 years your monthly mortgage payments are going to be approx. 1100-1200.

[l/l/rX]

Man 40k a year and only a 10grand down payment...ouch...you're going have to get home owners insurance which is another 8 grand or so because your down payment is so low. But i guess a condo would be your best bet for now.

[D. Dub]

I'm a mortgage broker -- :D

The highest purchase price you would qualify for assuming you have no other debt would be about the $190-200K approx. with a standard bank lender and a 40 year amotization at a good rate (OAC). There are other lenders that would let you go higher -- but with them taking a higher risk comes higher interest rates for you.

Your best bet would be to get a co-borrower to help out (family, etc). But then you would still face high monthly payments that may make you very house rich and cash poor!! But for some people thats OK if thats what they want. Different strokes for different folks.

Let me know if you have any other questions.

[Speed_69]

Originally posted by l/l/rX
Man 40k a year and only a 10grand down payment...ouch...you're going have to get home owners insurance which is another 8 grand or so because your down payment is so low. But i guess a condo would be your best bet for now.
:rolleyes: uhh homeowners insurance is not 8 grand. It would only be probably less then $1000/yr, it has nothing to do with what your mortgage payments are.

[QuasarCav]

Originally posted by Speed_69

:rolleyes: uhh homeowners insurance is not 8 grand. It would only be probably less then $1000/yr, it has nothing to do with what your mortgage payments are.


:rolleyes:

UHHH, I think he was talking about CMHC fees fow a high ratio mortage. With a low down payment and a 200K mortgage they could approach 8K.

[nos_efx]

They can even go higher then 8k, really depends on what your down payment is and what bracket you fit in for CMHC fees, the closer you are to making the 25% then the lower the CMHC percentage fee is.



Originally posted by QuasarCav



:rolleyes:

UHHH, I think he was talking about CMHC fees fow a high ratio mortage. With a low down payment and a 200K mortgage they could approach 8K.

[izzoblitzo]

this comic is true these days..http://img151.imageshack.us/img151/8105/calgaryeditorialcartoonoo0.jpg

[88CRX]

Genworth mortgage insurance is the following:

0% down payment = 3.10% mortgage insurance
5% down payment = 2.75% mortgage insurance
10% down payment = 2.0% mortgage insurance

etc etc etc

the rest can be seen here http://www.genworth.ca/mi/eng/home_ownership/how_much_cost.asp


So on a $300k purchase with 5% down your looking at $7800+ in mortgage insurance alone. So yes, $8k is accurate.