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Thread: % of income on mortgage payment and % of income on total housing costs?

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    Default % of income on mortgage payment and % of income on total housing costs?

    What % of net (take home) pay are you paying towards your monthly mortgage payment?

    And

    What % of net (take home) pay are you spending monthly on housing costs? Housing costs being mortgage + property tax + condo fee’s (if applicable) + utilities (not including cable/internet) + insurance.


    Read lots of stuff online about total housing costs to not exceed 30% gross salary which seems absurdly high! Is 30% of net salary for all housing costs more reasonable/safe or is 30% of net still crazy?

    Obviously the amounts of other debt one has will make a huge difference in these calculations but interesting topic to see roughly where people are actually at.

    Edit: In before 10% net salary payments towards $1m house baller posts!

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    I was ~40% of net income on my condo living alone, however its now rented and it pretty much covers itself.

    I now split a place with my GF so I am closer to ~20%. Although with her income she is closer to ~40% on our current place.

    At 40% I felt pretty trapped, I don't think I would personally exceed 30% of net going forward.

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    I'm 24% mortgage and 48% housing. After savings and all, pretty trapped too

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    0% house is paid off.

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    For a long time the total housing costs would have been about 25% of net household income.

    FWIW, I would re-define total housing costs as mortgage, property tax, all utilities including cable & internet plus monthly savings to build a cash reserve of about $10K for large repairs like a new furnace, HWT, condo cash call, etc. That should probably be another $250 - $300 a month until the cash reserve is built up.
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    Hmm, never actually ran those numbers.

    If I go straight off my Net pay, my total housing costs (mortgage, insurance, utilities and property tax) take up around 64% of my paycheque.

    My wife does work part time so if I factor that in I am down to around 54%

    Looks like we are around 40% of gross Salary and live pretty comfortable.

    We own 100% of everything else we have so no car loans. LOC's or CC debt.

    Seeing as I obviously have a higher ratio then the internet suggests, my question is, what do people spend their money on if they actually are under that 30% mark? We have decent savings, make monthly RRSP and RESP contributions, send our kids to private school and take a few vacations a year (mostly camping but the occasions all inclusive winter get away) and the cash flow works?

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    Bachelor checking in here. I'm over 40% net for just mortgage
    Last edited by jwslam; 05-15-2017 at 08:28 AM.

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    Originally posted by s_havinga

    Seeing as I obviously have a higher ratio then the internet suggests, my question is, what do people spend their money on if they actually are under that 30% mark? We have decent savings, make monthly RRSP and RESP contributions, send our kids to private school and take a few vacations a year (mostly camping but the occasions all inclusive winter get away) and the cash flow works?
    The smarter ones probably have larger savings accounts/investments and meaningful/maxed out RRSP/TFSA contributions.

    The not so smart ones have $500-$1000/month car payments I bet

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    Originally posted by s_havinga
    Hmm, never actually ran those numbers.

    If I go straight off my Net pay, my total housing costs (mortgage, insurance, utilities and property tax) take up around 64% of my paycheque.

    My wife does work part time so if I factor that in I am down to around 54%

    Looks like we are around 40% of gross Salary and live pretty comfortable.

    We own 100% of everything else we have so no car loans. LOC's or CC debt.

    Seeing as I obviously have a higher ratio then the internet suggests, my question is, what do people spend their money on if they actually are under that 30% mark? We have decent savings, make monthly RRSP and RESP contributions, send our kids to private school and take a few vacations a year (mostly camping but the occasions all inclusive winter get away) and the cash flow works?
    I think you're in a slightly different scenario than most considering you have everything else paid off.

    I believe the internet's % is based off the assumption of an $XXX/ month car payment and minor other debts.

    I just paid off my other debts so I will be in a similar position to you on our next house. Pumped up to start socking away some major cash!

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    What constitutes as pay?

    About 30% of my income is from salary/full time work and 70% of it is from investments/dividends/small business/etc.

    I only spend my salary on my mortgage/housing costs, and that ends up being around 25% of my pay cheque.

    Everything else is dumped into travelling, future children's university fund, investments and bad habits..

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    And I guess total debt vs net salary ratio would be more interesting to know. But I'm not sure if people would honestly share that information.

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    Looks like we are at 26% of net for mortgage...which is pretty good because our payments are higher than needed. With everything else factored in, it's around 34%.

    And the nice thing is...no car payments, no loans, nothing on the HELOC, no balance carried on the CCs, and no kids.

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    Now that we are SI2K's it's around 30% for total housing costs, maybe a little more. When we were DI2K's it was under 15%.

    Although I do run a very "cash conserving" mortgage of the longest amortization. Back when we were a two income family we also put some extra mortgage payments in to hit the principal. The flexibility to stop those and how quite low monthly payments now is quite welcome.
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    'bout 27% for mortgage, and 40% on housing costs as described by OP.
    Live alone, inner city condo. No other debt.
    Originally posted by scat19
    I have a BMW so im not stupid.

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    21% and 31% for condo living. Might upgrade to a house in which case that number will obviously go up. I'd say don't worry too much about cash flow as long as you are able to pay mortgage payments relatively comfortably. You spend a significant portion of your life in your home and its one of the few things in life where you get to enjoy and use it and it retains or appreciates in value. Just keep a rainy day fund just in case of some financial calamity.

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    We are not big spenders, most shopping is done at Costco, this includes clothes LOL. Wife just came back from china and got all our blinds done, tons of savings there

    Dual full time income, married with 2 kids
    25% Mortgage
    25% Housing

    - Have a rental that's breaking even with mortgage payments.
    - Max out RRSP contributions yearly thanks to work match program
    - Max out RESP for kids
    - No other debts or loans. Cars are paid off.

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    Single person.
    22% for my total housing costs. Don't feel like figuring out just my mortgage stuff.
    I have renters.

    Edit: Single vs couple makes a massive difference in lowering your costs.
    Last edited by mr2mike; 05-15-2017 at 09:29 AM.

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    One and a half income w/ gf

    Total housing costs 25%

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    Single and ready to mingle

    2/5 mortgage
    Almost half on total housing.

    Condo fees

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    Gross salary, before taxes is 15.4% mortgage, 21.4% total housing. BUT, I dont actually take possession f the house until June

    We own both our cars outright and no other debt

    Thats just the forecast


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