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How much does one have to make to buy a $1.2 million home in Vancouver? (lemmy.ca)

submitted 1 year ago* (last edited 1 year ago) by SkepticalButOpenMinded@lemmy.ca to c/personalfinancecanada@lemmy.ca

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That's the benchmark price in Vancouver. Let's say one has $300k for a downpayment. What does the household income, pre-tax, have to be to afford that home?

I know there are online calculators, but I'm not sure how accurate they are, and I figure this group will be more knowledgeable.

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[–] Stochastic@lemmy.ca 9 points 1 year ago (1 children)

~$240,000/yr household pre-tax income to qualify for a $900,000 30yr mortgage at 5.09% with a few assumptions.

Keep in mind that a $300k down payment is quite small for someone looking at a $1.2MM home ($240k is the absolute minimum). Most have a much larger chunk of equity from their prior condo before looking at a "benchmark" sized listing.

[–] SkepticalButOpenMinded@lemmy.ca 3 points 1 year ago

Thanks for the mortgage approval estimate. We're not at $240k income now, but we very well might be in a few years. So I'm considering yeeting into a home we can only barely afford — perhaps with parents co-signing. In the past, I would've agreed with others that this is a bad idea, but, given the trends of the housing market, now I'm not so sure.

$300k down payment does not include $100k set aside as buffer.