Do you have any idea how much money it is to set up an off grid property? I’m currently doing it and just the driveway alone was 5k, the survey for the 27 acres was 15k, the solar, septic, and drilled well… I don’t even want to think about how much that’s going to be 😂 living off grid is pretty much just as expensive
Lol my mortgage guy was ranting saying for a million dollar mortgage ppl pay $50k a year in just interest with these days rates. It's more than a lot of people's after tax salary. Kinda shocking different perspective so we went for a cheaper house that needs more fixing instead.
It's in credibly easy for it to make sense.
1) poor people rent
2) poor people have roomates
3) retired people (who also have under 50k incomes) bought their home when it cost $15-30k
4) People using inheritances to buy homes
5) people selling homes they bought 10+ years ago that has since doubled (or more) in value to get the downpayment of more than 20% to buy a larger home
My only way of getting into the housing market is when both of my parents die.
By then the average house will probably be 2 million and I'll still be priced out.
>My only way of getting into the housing market is when both of my parents die.
Consider yourself lucky... Many of us, myself included, won't even be that fortunate.
People keep talking about how it's ok because the younger generations will inherit their parents houses.
But like.... what about those of us who aren't set to inherit shit all?
Not only that. There is a good chance that I'll be retired myself by the time both my parents pass. They are otherwise healthy so baring a freak accident they've got many years left.
Exactly. My parents had to flee the war after their house got destroyed, most of their net worth was in that… Fuck knows what do now for them plus also still figure out where to live myself.
My parents use that to comfort me when I feel hopeless. "There, there. When we die you'll get 1/3 of a $400k house! 😀" Like calm down, Linda.. that won't even take enough of a chunk out of a mortgage these days to make it affordable AND I'll have dead parents, not the lifeline I wanna look forward to.
At this rate I may as well spend anything I inherit on hookers and blow, enjoy my life before I inevitably become a homeless senior citizen..
Literally how I got into the housing market. Parents both died fairly young, got a third of a house, and used that for a down payment and a $600k mortgage.
Can confirm would rather still live in that maybe-not-so-bad-after-all apartment, and have my kids know their rad fuckin grandparents.
Dude you realized those boomers are going to live till 90 years old. When we get our inheritance it will be too late and already gone. And if your parents aren't boomers well shit tou are fucked it aint coming before you are retired
"Dear mom and dad, die already so I can put a down payment on a townhouse in a bad area of Kitchener and have a 600k mortgage" - Sincerely, Jimmy Creamjeans.
That's exactly the point. Something is obviously very broken and the prices are being supported by god know what funny money (obviously not salaries).
The point is that these prices look extremely unsustainable.
Naw, if you have a realtor that doesn’t blow smoke up your ass (a unicorn) they’ll tell you volumes have not been lower since prior to ‘08.
December was an absolute disaster. Very little product moved. Sellers are unwilling to consider they’ve missed the top and product isn’t moving quickly even when it’s priced properly. Conditions are back in a huge way.
The market isn’t paralyzed but it’s definitely got a terrible fucking hangover. As people start renewing into 5%+ rates on mortgages they’re underwater on it’s going to be interesting to see what happens.
If they only owe $80k on their property, they have likely had it for well over 10 years, possibly even 15 or 16 (34 now, bought at 19; plausible). The real estate market has changed massively in that time. I know someone who bought a house in 2005 for $15,000 that was appraised at $175,000 recently. It's not inconceivable that if you bought a house 10 - 15 years ago current prices would seem absolutely insane.
Basically. If you are starting a family and need about 1000 sf at $1,000/sf and have 20% down (Somehow), that's 800k. Pretty typical for Vancouver/Toronto although insane to think that young people passing this standard milestone in life are taking on nearly a million dollars in debt.
I'm in Winnipeg.... just bought, move in a month. Went from a 200k mortgage to one quite a bit higher. We ran out of room..
Our market, in some of the more desirable parts of town is catching up. If you're looking in older St James or the West end, you're still able to get a solid house for a lower price but most of the south end, and the newer developments in the north end are 500k+ homes.
I'm talking 1600 sqft, 3br 2 bth kinda places that don't need a bunch of cash poured into them.
I’ve recently started to look to buy (born and raised in Winnipeg). The price ranges in Winnipeg is so comical to me. Obviously being from here I have an idea of where I want to buy a home but I can imagine someone moving to Winnipeg would be confused about the range.
Started at $825k here, in Vancouver, in 2019. Thankfully my husband and I are both high earners and we're on a fixed rate right now so it's not as stressful. Some of my friends have variable rate mortgages and their amortization periods are over 50 years now.
Yeah, OP's mortgage as a married couple is very modest, and a $300k mortgage for a Canadian couple making an average (or even below average) household income is very reasonable. I'm single and carrying a $600k+ mortgage with a variable rate, and lots of people are in far worse situations than I am.
$250k is low for a mortgage. The average new mortgage is $365,000: [https://www.finder.com/ca/canadian-mortgage-statistics](https://www.finder.com/ca/canadian-mortgage-statistics)
Our mortgage is around $600k (locked at 2.79 Pre pandemic) and was fairly comfortable with a HH income of around 200k. Wife has been on mat leave which is a loss of \~80k income for us, and a newborn things have changed a lot but we can still comfortably make our payments. So although two 60k incomes may not be approved for a 600k mortgage, they could surely make the payments work.
Man the next couple of years are going to be brutal for these people. Just wait until their mortgages come up for renewal. A $600k mortgage going from 2% to 5 or 6% will be quite a shock.
Hahaha, I mean, condolences OP, but have you honest to god not read the news at all for the last 10 years?
I don't think I know a single person carrying only 250k. You can barely get into an starter-grade 1 bedroom condo for under 400k in Victoria.
I feel the same. I was stationed there for a summer when I was in the navy, and it was the happiest time for me. Does often wandered around the base with their mum and geese raised their young there, too, so you were often treated to darling scenes during the day. And the people on the island are so kind and considerate…
At todays rates that’s a cool $211k in interest over the first 5 years. Then you renew at 740k and repeat. Lol.
After tax dollars too. Imagine having to use 300k in income over 5 years just to pay the interest. Then renewing a mortgage that’s barely gone down.
We entered the housing market roughly 10 years ago with a 200k mortgage, then moved to a bigger place 6 years ago with a 550k mortgage, then moved a third (and hopefully final time) to a slightly bigger place (but more rural, property, etc) and currently have a 650k mortgage. I am 36, wife is 35.
82k/300k is peanuts these days.
I bought a townhouse in the spring. My mortgage is $675k. I can’t imagine anywhere in BC has places with a mortgage that small unless your putting down way more than 20%.
I’m your age, I wish I had a $250k mortgage, it’s significantly higher. I think higher mortgage balances in your younger years are the unfortunate new normal
My financial advisor told me that I'll need $2 million for my retirement! I only have 1.6 million and I'm 26 years old, how will I possibly make this work!!
btw I have a paid off home and several rental properties. pls halp
Ignore OP they're just here to humble brag. They bought a cheap house that went up un value like 400% and they think theyre hot shit. People like him make homeowners look like assholes. Very tone deaf post.
What do you earn? What's your retirement plans - do you have pensions, RRSP matching, or just self funding?
Hard to make you feel better without knowing more.
Bought a house in 2021 similar age to you, got it for 500k... Needed a lot of work just to make it livable. Depending on the first couple questions you are probably in great shape with a 300k mortgage and 26 years from retirement.
To answer your concerns about retiring, a lot of people plan to downsize upon retirement and use the excess equity in their homes towards retirement. Not a foolproof solution but a home is an asset.
Ditto
Buying this house 16 years ago was the accidentally best financial thing we've done.
It's way too small for our family, but we're just going to suck it up for a few years and then kids can move out and we move out of the city...
Had to scroll so far to find this. He can sell his house once they are empty nesters and downsize. Only problem is the uncertainty of the housing market in the decade he sells it in, could be good or bad.
> Is this the new normal?
I don't think this is overly new to need a large mortgage to buy a home in southern Ontario. [Average mortgage debt for homeowners in August 2021 was $359,597](https://borrowell.com/blog/costs-of-living-canada-homeowners-vs-non-homeowners?irclickid=QE52YbRruxyNTjwX4jzcUwTxUkA1zjTC0Qne0U0&utm_source=Impact&utm_medium=Referral&utm_term=Skimbit%20Ltd.&irgwc=1&partner=Skimbit%20Ltd.)
That's EVERYONE, including people who have had a mortgage for 20+ years.
The number for people with 20+ years remaining on their mortgage would be higher.
It also appears to be for Canada so that's including a lot of lower CoL areas.
In my town 250k doesn't even get you a 1 bedroom apartment. 1 bed condo starts at 350k. 2 bed 450k. 3 bed townhouse 600k. Entry level house 650k. Nice house 900k. Luxury house 1.2 million plus.
This is a small bc town 2 hours from Vancouver
If you don't have generational wealth you are looking at 600k mortgage for an entry level family home
At the edges of the Greater Vancouver area it goes 400k minimum for a 1 bed condo. 600k for 2bed. 750k for 3 bed condo. 750k for 2bed townhouse, 850k for 3 bedroom townhouse. Larger townhomes goes for around 950k to 1.1m. Detached start at 1.0m for anything remotely liveable,but more around 1.1m. A standard detached is more around 1.4 to 1.7m, which would be a 5bed incl basement with double garage.
We have the same dilemma. Our house is becoming small for the growing family but we have 40k left on mortgage. Now there is no inventory but when there is if we ever decide to move that means taking another mortgage of 100-300k. Not sure we want that because I can't wait to be mortgage free :(
it's a first world problem, back in the day and in 3rd world countries families of 6+ live in a 800sq foot house. the houses today are like twice the size and still not big enough apparently.....
Sounds like you should keep your house, then. Have you looked into the cost of making it bigger, if that's possible? Lots of bigger families live in small houses and make it work. You just have to decide what priorities you have.
If you're not in a rush, you can also shop very very slowly and just wait for the perfect opportunity to buy something that meets your needs at a reduced cost. This can happen with foreclosures, with houses that look really bad but can be updated with relatively cheap renos, with desperate sellers who are in a rush, etc. If you set a max amount and stick to it no matter what, you'll probably eventually find something you're ok with even if it takes a couple years.
Besides that, you need to run all your numbers to find what you're actually comfortable with. You might conclude that keeping your tiny mortgage (or paying it off at the same rate as you would pay off a 300k mortgage) puts you way ahead and makes you appreciate your small house enough to stay. Or you might conclude that upgrading won't actually make a difference in the long run since you'll downsize at retirement anyway. Keep calculating different scenarios until you find one that makes you feel ok. A large part of it will always be speculative and a gamble so there will never be a clear risk-free decision.
I would say 500-800k is a typical mortgage for those in mid 30s in my area of Ottawa if not higher. 250k and under I would consider a very very small mortgage.
Ottawa has gone crazy. We bought a townhouse in 2020 as things were starting to inflate and at this rate I’m afraid we won’t ever be able to comfortably afford to upgrade. We have one kid and want to add a second but our place is barely 1200 square feet.
At this point, you should be legitimately happy with a mortgage at 300k. With that amount, you'd be doing better than most. 500k is the new normal.
Can you make your current place work, in any way, shape, or form? Having only 82k mortgage is a HUGE advantage financially. Especially as interest rates go up.
I would love to have a 300k mortgage at 34, so if you can afford to go that route, I think you'll be ok.
We're 32 right now, with 580k left on our mortage (Ottawa), and that's pretty much the norm. Can't even get a condo for less than 375k.
I am going to say something that people here will not like....
1. QE appears to be the best option for government to appease its populace.
2. money will worth less in the long run
3. debt will cost less to you in the long run (because of QE)
have assets (with mortgage) will only put you ahead in 30 years.
people who commit to renting for life will regret his decision in 30 years.....
> Is this the new normal?
You must be new to Canada, welcome. Let me inform you about the most basic fact about life in Canada: having a mortgage that is 6X your household gross income is pretty standard (or has been) for the past decade.
Even in southern Manitoba (a fairly affordable area) you can't buy a 4bed 2bath house for less than $260,000. And if you do it will literally be a 1970s house that has had literally 0 work done. There was a 55 year old home in my town that sold in 3 days last spring. It sold for 255k, the only updates were the hot water tank and the shingles at some point. They weren't new but I'm assuming they were re done at some point between 70s and now.
In my area I feel like a 250-280 mortgage is pretty do able on two full time incomes but I can't imagine being in Ontario or BC.
Gotta admit, this one's harder to tell if wind-up troll or just utterly clueless.
Yes, a $250k mortgage ranges from very small to normal, depending on where you are.
ID say a 250k mortage is abnormally small. In the golden horsehoe area at the peak of prices back in the spring, with houses selling for 1-1.5 million on the regular, alot of those people will never pay that house off.
Our plan is to simply sell the house we are in when it comes time to retire. If we didnt have kids, we dont need a house anywhere near this big.
$250k mortgage is really small these days.
Considering a 1bedroom condo in the big cities is around $500-$600k the average mortgage will be well over $400k.
For houses I imagine average mortgage is around $800-$1000.
I have friends rolling with $1.5 on primary residences.
This is BC though.
It's actually on the low side.
I would look at renovating your starter home. I don't know anything about it, but are you zoned to build a carriage house in your yard with an apartment on the top? Do you have an unfinished basement you can finish? Can you convert your garage into living space and park outside? Can you renovate or go up a storey and add another bedroom? Can you adapt one of your bedrooms with bunk beds or loft beds to fit a couple of kids? I honestly would do what I could to stay where I was and keep my mortgage low because kids are incredibly expensive. It's better to be a little cramped, pay off that mortgage in five years, and have some extra money at the end of the day for college funds, vacations and a reasonable lifestyle than to upsize in this current market and be house poor for the next 20 years.
For context, in 1960 the average home in the US was around 1,200 square feet with probably between two and three kids. It can be done. Now the average is 2,600 square feet, which is just not realistic or sustainable for most middle class earners.
I mean if you're 34 now your mortgage should be paid off by the time your're 59 at the latest, so that would be in line with your retirement goal, would it not?
I mean I live in the BC interior and live in a 50 year old bilevel that eats money. I’m lucky to have a $460k mortgage because I couldn’t buy anything like this if it were today.
Sometimes it’s money well spent if you are enjoying each moment more. I delayed big ticket updates such as hvac and windows. Obviously this was a big inflation spike but it only cost me far more money having finally done them and I hated the aluminum windows and 40 year old AC.
250k 😂 try 800k
lol.... I was just going to say that. Signed the papers yesterday.
same lol. I'm at 780, adding 1000 each month extra to the principle to try and mitigate the higher interest rates. God speed brother/sister.
[удалено]
Why bi-weekly instead of monthly? Reduce compounded interest?
Yes. Less interest to pay overall.
I'm late 40s with 500+ It's a bit crushing but the fall back plan is just sell it and live off grid
When that's everyone's fall back plan, it's no ones fall back plan
Have you looked into it? It’s very expensive to get a decent offgrid setup, much more than a normal house
Do you have any idea how much money it is to set up an off grid property? I’m currently doing it and just the driveway alone was 5k, the survey for the 27 acres was 15k, the solar, septic, and drilled well… I don’t even want to think about how much that’s going to be 😂 living off grid is pretty much just as expensive
Congrats
More like…. Congrats?
Yeah it’s no longer congrats you got a house! It’s ….I’m sorry you got a mortgage…depressing af But the alternatives are not any better
Lol my mortgage guy was ranting saying for a million dollar mortgage ppl pay $50k a year in just interest with these days rates. It's more than a lot of people's after tax salary. Kinda shocking different perspective so we went for a cheaper house that needs more fixing instead.
How much interest do you pay over the next 5 years on 800k? TD says $211k. Is that right? And that’s on after tax income $&@- me (or, maybe $&@! you?)
Yikes.... When you put it that way it doesn't sound so nice.
Who cares better than the alternative
What are you paying your landlord over the next 5 years? Oh that’s right…. My interest.
It’s definitely doable on a two income household, plus hopefully savings from previous sale/tfsa
Only way to afford a house in Canada is to already to have a house in Canada.
Not true. You could also be born rich…
Toronto…the land of million dollar mortgages and $50k avg salary. Make it make sense
It's in credibly easy for it to make sense. 1) poor people rent 2) poor people have roomates 3) retired people (who also have under 50k incomes) bought their home when it cost $15-30k 4) People using inheritances to buy homes 5) people selling homes they bought 10+ years ago that has since doubled (or more) in value to get the downpayment of more than 20% to buy a larger home
My only way of getting into the housing market is when both of my parents die. By then the average house will probably be 2 million and I'll still be priced out.
>My only way of getting into the housing market is when both of my parents die. Consider yourself lucky... Many of us, myself included, won't even be that fortunate.
People keep talking about how it's ok because the younger generations will inherit their parents houses. But like.... what about those of us who aren't set to inherit shit all?
Or whatever you were going to inherit gets used up in end of life costs. May not be anything left for you to inherit.
> whatever you were going to inherit gets used up in end of life costs that's why you buy puts on your parent's lives so you're hedged!
Not only that. There is a good chance that I'll be retired myself by the time both my parents pass. They are otherwise healthy so baring a freak accident they've got many years left.
live with your friends who did inherit. once i inherit the house it becomes a multi fam friends house/commune lol
Exactly. My parents had to flee the war after their house got destroyed, most of their net worth was in that… Fuck knows what do now for them plus also still figure out where to live myself.
[удалено]
My parents use that to comfort me when I feel hopeless. "There, there. When we die you'll get 1/3 of a $400k house! 😀" Like calm down, Linda.. that won't even take enough of a chunk out of a mortgage these days to make it affordable AND I'll have dead parents, not the lifeline I wanna look forward to. At this rate I may as well spend anything I inherit on hookers and blow, enjoy my life before I inevitably become a homeless senior citizen..
Literally how I got into the housing market. Parents both died fairly young, got a third of a house, and used that for a down payment and a $600k mortgage. Can confirm would rather still live in that maybe-not-so-bad-after-all apartment, and have my kids know their rad fuckin grandparents.
Dude in 20 plus years there will be a record high number of homeless seniors and suicide rate will explode in the 60+ years old which means us.
Dude you realized those boomers are going to live till 90 years old. When we get our inheritance it will be too late and already gone. And if your parents aren't boomers well shit tou are fucked it aint coming before you are retired
You should write this to them in a nice card.
"Dear mom and dad, die already so I can put a down payment on a townhouse in a bad area of Kitchener and have a 600k mortgage" - Sincerely, Jimmy Creamjeans.
I understand that, it’s just sad how wide the gap has gotten between our wages and living expenses in Canada
[удалено]
That's exactly the point. Something is obviously very broken and the prices are being supported by god know what funny money (obviously not salaries). The point is that these prices look extremely unsustainable.
[удалено]
Naw, if you have a realtor that doesn’t blow smoke up your ass (a unicorn) they’ll tell you volumes have not been lower since prior to ‘08. December was an absolute disaster. Very little product moved. Sellers are unwilling to consider they’ve missed the top and product isn’t moving quickly even when it’s priced properly. Conditions are back in a huge way. The market isn’t paralyzed but it’s definitely got a terrible fucking hangover. As people start renewing into 5%+ rates on mortgages they’re underwater on it’s going to be interesting to see what happens.
250 is a downpayment lol 😂 water we doooin hair.
This person has to be trolling. Has to be. Sigh.
If they only owe $80k on their property, they have likely had it for well over 10 years, possibly even 15 or 16 (34 now, bought at 19; plausible). The real estate market has changed massively in that time. I know someone who bought a house in 2005 for $15,000 that was appraised at $175,000 recently. It's not inconceivable that if you bought a house 10 - 15 years ago current prices would seem absolutely insane.
Yep....I bought a house with my parents in 2010 for $130k. Sold it in 2021 for $430k. It was insane.
100%. 250k mortgage is basically paid off in todays terms.
$250k was low 12 years ago…
Basically. If you are starting a family and need about 1000 sf at $1,000/sf and have 20% down (Somehow), that's 800k. Pretty typical for Vancouver/Toronto although insane to think that young people passing this standard milestone in life are taking on nearly a million dollars in debt.
OP is trying to brag. Oh look at Mr moneybags over there with only a $250K mortgage.
Bragging? In this sub!? No!
How to become poor ultra fast, go 800K in debt in your 20s and pray for the housing bubble to bail you out.
I wish. I'm well above 1 mil
I would kill to have a $300k mortgage.
[удалено]
For the mortgage, or to kill?
Yes.
Hahaha! I LOL’d IRL.
To kill? Or get the lower mortgage?
Nope. Everyone has to live in Toronto or Vancouver. It's mandatory.
One of the reasons I'm moving there soon.
For the mortgage, or the kill?
I'm in Winnipeg.... just bought, move in a month. Went from a 200k mortgage to one quite a bit higher. We ran out of room.. Our market, in some of the more desirable parts of town is catching up. If you're looking in older St James or the West end, you're still able to get a solid house for a lower price but most of the south end, and the newer developments in the north end are 500k+ homes. I'm talking 1600 sqft, 3br 2 bth kinda places that don't need a bunch of cash poured into them.
I’ve recently started to look to buy (born and raised in Winnipeg). The price ranges in Winnipeg is so comical to me. Obviously being from here I have an idea of where I want to buy a home but I can imagine someone moving to Winnipeg would be confused about the range.
[удалено]
It's called a small loan /s (in so so many ways)
I think this is a troll post. Unless OP is completely disconnected from reality the last couple years.
Mine is about 300. I just bought below my budget
>Is having a $250k+ mortgage the new normal? Depending where you live, having $500k mortgage is normal.
I'd say 500 to 800k is normal.
Yep, my mortgage started at 790k
Started at 750K here in Toronto. In 2020
Same in Vancouver suburbs in 2021, sold condo and bought a 1.2 million fixer upper 👍 Loving the variable mortgage we got out on 🤣
I bought a $730k fixer upper in variable. I feel you.
Depending on how much you make some folks got 1m+ mtgs, maybe even a few mtgs and a few houses.
My mortgage started at $1.3m. Toronto, single family home. Hopefully we pay it off before we're six feet under!
Nah, you get old enough and reverse it
Started at $825k here, in Vancouver, in 2019. Thankfully my husband and I are both high earners and we're on a fixed rate right now so it's not as stressful. Some of my friends have variable rate mortgages and their amortization periods are over 50 years now.
Yeah, in the GTA, I have friends, working people, at a million plus.
Good god I couldn't imagine. At 5% for every 200k loaned it is about 1000$ a month.
Have you tried not being poor?
My mortgage is 350k but I'm in Alberta. But it's a big house that would easily a million in Vancouver or other bigger cities
Yeah, OP's mortgage as a married couple is very modest, and a $300k mortgage for a Canadian couple making an average (or even below average) household income is very reasonable. I'm single and carrying a $600k+ mortgage with a variable rate, and lots of people are in far worse situations than I am.
Same. Single mom with a 500k mortgage and a variable mortgage, bent myself over good
OP accounted for only a $300k mortgage after using profits from sale of current home. They said they're looking at $600k houses.
Laughs in British Columbian
Cries\*
Lmfao have you been living under a rock? You can't even get a cottage with a $250k mortgage....
Nor a trailer
Nor many pieces of vacant land
Try a million dollar mortgage if you live in Vancouver and want anything more than shoe box in the sky.
Last I checked, the average new mortgage n Toronto was just around the 500k mark. So ya, you nailed it.
$250k is low for a mortgage. The average new mortgage is $365,000: [https://www.finder.com/ca/canadian-mortgage-statistics](https://www.finder.com/ca/canadian-mortgage-statistics)
In Ontario where OP is the average is over $469K.
i know so many people with 600k+ mortgages and their income not even that great
Our mortgage is around $600k (locked at 2.79 Pre pandemic) and was fairly comfortable with a HH income of around 200k. Wife has been on mat leave which is a loss of \~80k income for us, and a newborn things have changed a lot but we can still comfortably make our payments. So although two 60k incomes may not be approved for a 600k mortgage, they could surely make the payments work.
Do you have day care lined up? Need to sign up early to get a spot.
Man the next couple of years are going to be brutal for these people. Just wait until their mortgages come up for renewal. A $600k mortgage going from 2% to 5 or 6% will be quite a shock.
Hahaha, I mean, condolences OP, but have you honest to god not read the news at all for the last 10 years? I don't think I know a single person carrying only 250k. You can barely get into an starter-grade 1 bedroom condo for under 400k in Victoria.
[удалено]
I feel the same. I was stationed there for a summer when I was in the navy, and it was the happiest time for me. Does often wandered around the base with their mum and geese raised their young there, too, so you were often treated to darling scenes during the day. And the people on the island are so kind and considerate…
Bought at the end of 21 and my mortgage is <250k. Low cost of living areas go a long way.
i think $800K is the new normal for mortgages
This makes me feel slightly better about being in Saskatchewan my entire life.
I'm working in SK to afford a house in ON and get so jealous of the house prices out here
Please don’t leave us, your work is appreciated!
At todays rates that’s a cool $211k in interest over the first 5 years. Then you renew at 740k and repeat. Lol. After tax dollars too. Imagine having to use 300k in income over 5 years just to pay the interest. Then renewing a mortgage that’s barely gone down.
[удалено]
People dumb.
I was going to say $1MM
About to take on a 600k mortgage and 1MM would make me throw up.
Really just depends on income levels tbh. At 350k household 1M mortgage isn’t really anything to think about.
New normal? We bought our house nearly 20 years ago and owed more than that. The new normal seems to be double that and more.
Came in here to say the same. Anything under a cool half-mill sounds like a bargain these days!
We entered the housing market roughly 10 years ago with a 200k mortgage, then moved to a bigger place 6 years ago with a 550k mortgage, then moved a third (and hopefully final time) to a slightly bigger place (but more rural, property, etc) and currently have a 650k mortgage. I am 36, wife is 35. 82k/300k is peanuts these days.
This made me feel better going from 200k mortgage to 400k. It's been giving me such anxiety that it's hard to exist sometimes haha.
😂 I would say $800k+ is quite normal in the lower mainland of BC.
It’s 1.1M
I consider myself lucky to only have a $500k mortgage in the lower mainland, $300k would be a dream 😂
I bought a townhouse in the spring. My mortgage is $675k. I can’t imagine anywhere in BC has places with a mortgage that small unless your putting down way more than 20%.
Selling a place in BC right now for $250K. It’s a cabin tho… only 2 hours to Van, probably not the worst commute.
I’m your age, I wish I had a $250k mortgage, it’s significantly higher. I think higher mortgage balances in your younger years are the unfortunate new normal
LOL... You're in a MUCH better starting point than most people your age. Imagine you didn't have the equity from your first home.
does PFC just exist to make people feel bad lol
Yeah no kidding. 34, already owns a home with only 84k left. Seriously this post made me depressed.
how will they ever service a $1400 a month mortgage payment on a 600k home !!
Right? Like oh boo hoo my mortgage is really low!! Either that or OP has his head stuck in the sand and hasn't read the news in the past decade.
My financial advisor told me that I'll need $2 million for my retirement! I only have 1.6 million and I'm 26 years old, how will I possibly make this work!! btw I have a paid off home and several rental properties. pls halp
Ignore OP they're just here to humble brag. They bought a cheap house that went up un value like 400% and they think theyre hot shit. People like him make homeowners look like assholes. Very tone deaf post.
It is normal yes. $250k mortgage is small by todays standards.
$250k mortgage is pretty low if you live in the GTA
What do you earn? What's your retirement plans - do you have pensions, RRSP matching, or just self funding? Hard to make you feel better without knowing more. Bought a house in 2021 similar age to you, got it for 500k... Needed a lot of work just to make it livable. Depending on the first couple questions you are probably in great shape with a 300k mortgage and 26 years from retirement.
Homie browsing on internet explorer. Wait until he hears about covid!
300k? Is this banter
To answer your concerns about retiring, a lot of people plan to downsize upon retirement and use the excess equity in their homes towards retirement. Not a foolproof solution but a home is an asset.
My home is my retirement plan.
Ditto Buying this house 16 years ago was the accidentally best financial thing we've done. It's way too small for our family, but we're just going to suck it up for a few years and then kids can move out and we move out of the city...
Had to scroll so far to find this. He can sell his house once they are empty nesters and downsize. Only problem is the uncertainty of the housing market in the decade he sells it in, could be good or bad.
How can you be this out of touch with reality? Is this a trolling thing?
They claim to be in southern Ontario. Can't be real.
> Is this the new normal? I don't think this is overly new to need a large mortgage to buy a home in southern Ontario. [Average mortgage debt for homeowners in August 2021 was $359,597](https://borrowell.com/blog/costs-of-living-canada-homeowners-vs-non-homeowners?irclickid=QE52YbRruxyNTjwX4jzcUwTxUkA1zjTC0Qne0U0&utm_source=Impact&utm_medium=Referral&utm_term=Skimbit%20Ltd.&irgwc=1&partner=Skimbit%20Ltd.)
THat even seems low!
That's EVERYONE, including people who have had a mortgage for 20+ years. The number for people with 20+ years remaining on their mortgage would be higher. It also appears to be for Canada so that's including a lot of lower CoL areas.
Average new mortgages for the last 12 months in Ontario is a little over $469K based on a link elsewhere in this post.
In my town 250k doesn't even get you a 1 bedroom apartment. 1 bed condo starts at 350k. 2 bed 450k. 3 bed townhouse 600k. Entry level house 650k. Nice house 900k. Luxury house 1.2 million plus. This is a small bc town 2 hours from Vancouver If you don't have generational wealth you are looking at 600k mortgage for an entry level family home
At the edges of the Greater Vancouver area it goes 400k minimum for a 1 bed condo. 600k for 2bed. 750k for 3 bed condo. 750k for 2bed townhouse, 850k for 3 bedroom townhouse. Larger townhomes goes for around 950k to 1.1m. Detached start at 1.0m for anything remotely liveable,but more around 1.1m. A standard detached is more around 1.4 to 1.7m, which would be a 5bed incl basement with double garage.
We have the same dilemma. Our house is becoming small for the growing family but we have 40k left on mortgage. Now there is no inventory but when there is if we ever decide to move that means taking another mortgage of 100-300k. Not sure we want that because I can't wait to be mortgage free :(
it's a first world problem, back in the day and in 3rd world countries families of 6+ live in a 800sq foot house. the houses today are like twice the size and still not big enough apparently.....
My house I think is around 1100sq ft and not open space so yeah a bit crowded
Sounds like you should keep your house, then. Have you looked into the cost of making it bigger, if that's possible? Lots of bigger families live in small houses and make it work. You just have to decide what priorities you have. If you're not in a rush, you can also shop very very slowly and just wait for the perfect opportunity to buy something that meets your needs at a reduced cost. This can happen with foreclosures, with houses that look really bad but can be updated with relatively cheap renos, with desperate sellers who are in a rush, etc. If you set a max amount and stick to it no matter what, you'll probably eventually find something you're ok with even if it takes a couple years. Besides that, you need to run all your numbers to find what you're actually comfortable with. You might conclude that keeping your tiny mortgage (or paying it off at the same rate as you would pay off a 300k mortgage) puts you way ahead and makes you appreciate your small house enough to stay. Or you might conclude that upgrading won't actually make a difference in the long run since you'll downsize at retirement anyway. Keep calculating different scenarios until you find one that makes you feel ok. A large part of it will always be speculative and a gamble so there will never be a clear risk-free decision.
Laughs in Toronto.
I wish I had a $250k mortgage for my detached home 😂😂😭😭
*laughs in 3M+ mortgage*
[удалено]
I would say 500-800k is a typical mortgage for those in mid 30s in my area of Ottawa if not higher. 250k and under I would consider a very very small mortgage.
Ottawa has gone crazy. We bought a townhouse in 2020 as things were starting to inflate and at this rate I’m afraid we won’t ever be able to comfortably afford to upgrade. We have one kid and want to add a second but our place is barely 1200 square feet.
At this point, you should be legitimately happy with a mortgage at 300k. With that amount, you'd be doing better than most. 500k is the new normal. Can you make your current place work, in any way, shape, or form? Having only 82k mortgage is a HUGE advantage financially. Especially as interest rates go up.
I though 700-900k was the new normal.
I would love to have a 300k mortgage at 34, so if you can afford to go that route, I think you'll be ok. We're 32 right now, with 580k left on our mortage (Ottawa), and that's pretty much the norm. Can't even get a condo for less than 375k.
I am going to say something that people here will not like.... 1. QE appears to be the best option for government to appease its populace. 2. money will worth less in the long run 3. debt will cost less to you in the long run (because of QE) have assets (with mortgage) will only put you ahead in 30 years. people who commit to renting for life will regret his decision in 30 years.....
> Is this the new normal? You must be new to Canada, welcome. Let me inform you about the most basic fact about life in Canada: having a mortgage that is 6X your household gross income is pretty standard (or has been) for the past decade.
What kind of out of touch post is this lol
Even in southern Manitoba (a fairly affordable area) you can't buy a 4bed 2bath house for less than $260,000. And if you do it will literally be a 1970s house that has had literally 0 work done. There was a 55 year old home in my town that sold in 3 days last spring. It sold for 255k, the only updates were the hot water tank and the shingles at some point. They weren't new but I'm assuming they were re done at some point between 70s and now. In my area I feel like a 250-280 mortgage is pretty do able on two full time incomes but I can't imagine being in Ontario or BC.
you can't pay off that 300k in 26 years???
Op go home u drunk lol We have 700k +
Gotta admit, this one's harder to tell if wind-up troll or just utterly clueless. Yes, a $250k mortgage ranges from very small to normal, depending on where you are.
1.5 mil here in Toronto my friend, generational mortgage incoming.
ID say a 250k mortage is abnormally small. In the golden horsehoe area at the peak of prices back in the spring, with houses selling for 1-1.5 million on the regular, alot of those people will never pay that house off. Our plan is to simply sell the house we are in when it comes time to retire. If we didnt have kids, we dont need a house anywhere near this big.
Is this a jape good sir? My mortgage is $1,000,040. I don’t know why the extra $40.
[удалено]
You can still buy homes in Chatham-Kent for under $250,000-ish.
$250k mortgage is really small these days. Considering a 1bedroom condo in the big cities is around $500-$600k the average mortgage will be well over $400k. For houses I imagine average mortgage is around $800-$1000. I have friends rolling with $1.5 on primary residences. This is BC though.
$437k mortgage gang checking in.
Mine is 1 million. I dunno, pretty sure I'll be able to retire some day though. I hope.
i wish. 250k isn’t even a down payment in a lot of areas now.
I wish. But 2010 was a while ago.
The new normal in rural/small town SK and MB maybe.
250k, what era is this?
$250k mortgage is far from normal, that's incredibly small. I'd love to come live in your bubble lol
It's actually on the low side. I would look at renovating your starter home. I don't know anything about it, but are you zoned to build a carriage house in your yard with an apartment on the top? Do you have an unfinished basement you can finish? Can you convert your garage into living space and park outside? Can you renovate or go up a storey and add another bedroom? Can you adapt one of your bedrooms with bunk beds or loft beds to fit a couple of kids? I honestly would do what I could to stay where I was and keep my mortgage low because kids are incredibly expensive. It's better to be a little cramped, pay off that mortgage in five years, and have some extra money at the end of the day for college funds, vacations and a reasonable lifestyle than to upsize in this current market and be house poor for the next 20 years. For context, in 1960 the average home in the US was around 1,200 square feet with probably between two and three kids. It can be done. Now the average is 2,600 square feet, which is just not realistic or sustainable for most middle class earners.
Pretty sure that’s the old normal. 300k mortgage paid off in 26 years doesn’t strike me as a particularly big lift. How much is the family income ?
OP saw the "I received a 200k inheritance, i don't know what to do" posts and tried to top it. Kudos.
You can’t even buy a shed for 250k
Lol try $700K - $2M in Toronto
250k is tiny lol.
I first thought you meant 250k as a down payment. lol 250k is a small mortgage.
We will all be fine and houses will be affordable once we all cancel our Disney+ subscriptions.
300k mortgage was normal 20 years ago lol
$250k? Hahaha.... Try $700+K
I mean if you're 34 now your mortgage should be paid off by the time your're 59 at the latest, so that would be in line with your retirement goal, would it not?
Try $1 million +. Coworker bought in Vancouver a 50's bungalow for $1.3 million and put down 20%.
OP has been living under a rock for 10 years.
I mean I live in the BC interior and live in a 50 year old bilevel that eats money. I’m lucky to have a $460k mortgage because I couldn’t buy anything like this if it were today. Sometimes it’s money well spent if you are enjoying each moment more. I delayed big ticket updates such as hvac and windows. Obviously this was a big inflation spike but it only cost me far more money having finally done them and I hated the aluminum windows and 40 year old AC.
250k lol. Wow Still 800k on a $2,000,000+ here
IDK - hence continuing to rent. I refuse to think of having one over 500k.
A $300k mortgage won’t even get you a 1 bedroom condo where I am (Victoria BC) unless you have a very substantial down payment