What do you consider a reasonable top end for a house based on your income. 350 TC and approved for 1.7% mortgage considering house for $1.8M with 500k down but that still sounds insane amount of debt to take on to me. Maybe I'm just still stuck in the 90s when my parents bought a house for 200k

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It’s not crazy at all...your talking a mortgage payment of between $5-$5.5K on after tax monthly income of $18K. I think it is just the reality of living in Toronto these days.

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Unfortunately, that's fair

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Well what do you need in a house? If you don’t need a 1.8M house why take on extra debt instead of using the money to invest?

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When you say TC, does that include bonuses? I wouldn’t consider bonuses when working out my income for a mortgage.

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Not everyone has your comp structure. When I’ve talked banks they always take my income whole from the previous two tax returns.

Bought at about 1M, 250k down, total household comp at the time was 280 or so, and it felt like the very top end. You’re looking at a mortgage 1.7x mine, but with only 25% more income. Feasible but tough

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1.7% interest?? If so put the minimum into down payment and invest your extra cash into literally anything

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Carrying cost on a mortgage that size gets to be quite high, so down payment in this case is relevant for affordability.

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Hmm. Household income for us is about 350k. I’d say 1.8M is the very top end of what we would be comfortable buying. And that would be with a 1M down payment.

No. I’m a senior manager. Probably still 5-7 years out from partner, if I ever make it.

My spouse and I both work full time.

That's a $1.3M mortgage. My base salary is 350 (TC higher), and I'm about to pick up a 1.5M mortgage.

If your comp is steadily growing feels doable. If your comp isn't going up any more, it's a long 30 years.

P1 that's a good base comp. Wondering where I should jump to next

At that cost i would consider a less prestigious address for a knock down and custom build.

That price will get a modest/nice home 5-10k furom the city center, not a prestigious home.

Based on they they quoted me the bank would probably give you 2.3M. You should always stay under the max the bank gives you so that seems OK.

What location OP?

OP - Are you based in Toronto? If so, this is normal. Sadly. $1.3M mortgage on a $350K household income is fair, though - $1-$1.2M is more appropriate if you want to be conservative. Hopefully you don’t have any expensive car leases or extra expenses of sorts.. that would change my answer.

Toronto housing blows.

Yes it is the reality of living in Toronto. To find a “dream home” in a decent area is hard to find below $1.8m. I got lucky and purchased one few years ago for $1.3. Now it’s probably worth at $1.6-1.7 or more. I would try to keep the mortgage at $1m max even with low interest rate. Once we make over. $200k almost 50% goes to taxes and if over $300k it’s over 50% plus higher property taxes , daycare if applicable etc. Costs adds up. Something to consider.

My effective tax rate is 45% on TC of 500k. Yes, my marginal rate is stupid, but the lower rates on the first few hundred K helps.

Is that 1.7% for 30 years? If so, that's basically free money. You can invest in anything and make more than 1.7%.

Yes it’s affordable and within strike zone.
My household income is 300k and I have a mortgage of 1.9m and 600k down.
Feel free to dm and I can share my experience .
You work for google and your salaries are in line with partners at big 4.
You can definitely do 1.8

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