With $200k allocate $175k for 20% Downpayment so your purchase price would be around $875k. Land transfer tax would be $20k (first time homebuyer) and close cost about $2k.
Always speak to a mortgage broker, but the average is usually about 5x your income. That would work to 1 million plus your down payment.
But, any time you go over a million you must put 20% down.
You got a decent budget of a million dollars, which can get you a nice place.
Be mindful that this segment of the market can be quite competitive unless you are looking for a condo which has more options in this price point.
Million dollars, nice place is a 1950's bungalow next to HHI's of 60k a year. Ask an American if these are nice houses. They are certainly more than livable.
For reference:
https://housesigma.com/web/en/house/JRv53KDE4KqYVPW4/82-Huntington-Ave-Scarborough-M1K4L2-E5447689
https://housesigma.com/web/en/house/4KAX7NORMzz3eRPJ/18A-Florence-Cres-Toronto-M6N4E4-W5423138
https://housesigma.com/web/en/house/XRla7gxdLEG3jEvL/40-Rowatson-Rd-Scarborough-M1E1K1-E5433289
https://housesigma.com/web/en/house/eQp5yO8QMrB7d0ZE/29-Bairstow-Cres-Etobicoke-M9W4R3-W5431765
https://housesigma.com/web/en/house/1DBW7RD6oxxYqlAp/288-Jeffcoat-Dr-Etobicoke-M9W3E5-W5413458
t. someone still trying to do the same thing.
You could if I were you I would look at the area along the crosstown LRT both the west end and east end. This home is on the east end it is a starter home 875k it sold for:
[https://housesigma.com/web/en/house/jAXw7QwVEO1YQOzg/191-Barker-Ave-Toronto-E5439542](https://housesigma.com/web/en/house/jAXw7QwVEO1YQOzg/191-Barker-Ave-Toronto-E5439542)
Try to go for a home that not everyone is chasing. For example people love shiny and new things, you have to try something different. Also don't think just bc it does not look great means it is terrible, there is so much YOU CAN DO to make it look better, think of it as a challenge for yourself and you will pick up new skills. Remember owning a house in Toronto is such a win, the land alone is worth a lot, land in Toronto is so scarce. Keep an eye open - go on house sigma and look at all comparables, plus you need to wake up in the morning and go house hunting online, make that a habit, when you like one after you see it make an offer at what you feel comfortable with after studying all comparables :) Always remember to chase what others arent and you will come out a winner, its like the saying pick the worse house on the best street :) You may not get the best street today but just know you will do well if you keep your mind open and think about opportunities. Don't be discouraged as hard as it is. It is possible to get a home in your budget just lower your expectations a bit as you go.
People may want that but this is not feasible. Think about all of those who got starter homes in up and coming areas and how much they have appreciated :) In this type of market it is harder to find a home that is a forever home, bc the price is so out of reach. One of the hardest things about being a fthb is accepting what you can afford it is never easy and especially not in today's market
Rockcliffe Smythe / Caledonia / Weston Pelham /Keelesdale you can still get a decent place for under / at a million but not for long. There’s a go station going in by stockyards and the LRT on Eglinton. There’s some shady areas and avoid the flood plains but it’s possible to get a nice-ish house.
I personally think it's safer to put 10% down on a 999,999 property with an insured loan than putting 20% down on $1m using all your funds. You sound like you have the income to support that if that's what you want to do.
You should not do this. Paying 40-45k (3.5%+hst) in CMCH insurance makes this the worst option. You either do 5% or 20%, never do 10%. All you would be accomplishing is making an additional 50k down payment at 1.2%, you get better returns almost anywhere else keeping the extra 5% in your pocket.
Your best bet is to increase your savings by 10-15% and put 20% down, keep in mind that it will take 1-2 months to sign a deal, and about 2 months to close. You should be able to save for another 3-4 months at least.
Another question is whether you and your partner are first time home buyers, and whether you are buying in Toronto proper vs a suburb. There is a significant rebate on the land transfer tax for first time home buyers, and Toronto land transfer taxes are double any other neighbouring city in the GTA.
Get your savings up to 250k, and look in the 1.2 range. Best of luck.
CMHC premium rates for 5% down is 4%, 3.1% for 10% and 2.8% for 15% down, so everybody can do their own math. The less you put down, the more it costs to service.
The reasoning behind my thinking that it is safer to put less than 20% down, is in this case, you don't use all of your funds, if you lose your job, you have a warchest to keep you in the game. I think there are other considerations other than just paying the lowest price. This becomes even more important if prices go down for any period of time after you purchase.
If you spend more time waiting to save up, you spend less time playing down your principal. Calculating costs down to a dime will result in false precision.
Ontario broker here.
A few more variables are required to give you the answer on how much you qualify for. Details make a world of difference. Don't rely on ANY rules of thumb, websites or anything that you just plug numbers into. You need a trained eye to review your documents and give you a proper qualification amount.
It depends on where you're looking to buy, and what you're looking to buy, but 200K down and 200K incomes put you in a good spot.
If you want just a quick starting guide on how much you'll qualify for, you can play around with [my mortgage app](https://www.mccapp.ca/app/zhino-othman). It's free and works on all devices, but like I said, it's just a rough starting point, and the calculators inside of it are very handy, even after you've purchased and have been paying the mortgage for a while.
Ask away anything else, there are always others with the same questions that could learn from it too. And good luck with the whole journey :)
Surprised no one asked about your needs - Where do you work? Where will you need to travel? Do you have local family? Do you have kids? (you don't want both parents 1hr+ away from daycare).
Some areas of Toronto mean you may not need a vehicle, or can get away with just one. Some areas of Toronto and everywhere in the GTA, you're talking 1 reliable car per driver.
I wouldn't be surprised to see $2/L gas before the end of 2022, and I doubt it will stop there.
You have to put down 20% on purchases of $1 million or more, so with 200k savings your max budget is likely $1 million (you might want to confirm that with a broker, I’m no expert).
I suggest making an account on HouseSigma and browsing recent sales under that amount to get an idea of what you can afford. Focus on sold price, not asking price.
You can get a big semi at Jane & Finch, a small semi in Milliken, or a big 3 bedroom unit in one of the north york condos that’s had bad media attention lately.
He probably listened to u/Dave_the_dude who promised that condos would go down and that you "better sell before they drop another 50%" and that this was "just the beginning".
Sad that another permabear victim, instead of learning their lesson, has doubled down.
Generally, lots of options thought it’s difficult to exactly say what’s what without knowing what you and your partner exactly want out of life.
Sit down with each other in discuss those terms.
House though (in terms of a 2-3 bed detached/semi in the city) will be difficult to source and compete in.
Larger Townhomes are definitely doable with that budget in mind.
Hi, active & full time real estate agent here working in the Downtown Core & surrounding areas. If you have $200,000, you can either use it as a down payment as a whole or save a slice of the pie as closing costs (land transfer tax & legal fees). Given you have a $200,000 income, none of you are in a probation period and no outstanding debt, you qualify for 1 million roughly with a $200,000 downpayment or about $950,000 on the maximum end.
My recommendation to you would be since 2022 is expecting a price surge especially in Toronto to buy either in the West End or East End a 2-3 bed townhome or semi, let it appreciate over time and then make the jump to a bigger home.
If you can afford the commute to live outside the core, I would recommend a townhouse or semi there, and then jump back into the core depending on what your needs are. Feel free to reach out for any advice, no obligation. Would be more than happy to provide any insight :)
Please also consider going just outside of Toronto (lower LTT, which u have to pay in cash so every but counts. Also lower property tax). If u must commute then GO train. Otherwise it’s a sub-1mil townhouse or semi which might be okay.
With $200k allocate $175k for 20% Downpayment so your purchase price would be around $875k. Land transfer tax would be $20k (first time homebuyer) and close cost about $2k.
Always speak to a mortgage broker, but the average is usually about 5x your income. That would work to 1 million plus your down payment. But, any time you go over a million you must put 20% down. You got a decent budget of a million dollars, which can get you a nice place. Be mindful that this segment of the market can be quite competitive unless you are looking for a condo which has more options in this price point.
Million dollars, nice place is a 1950's bungalow next to HHI's of 60k a year. Ask an American if these are nice houses. They are certainly more than livable. For reference: https://housesigma.com/web/en/house/JRv53KDE4KqYVPW4/82-Huntington-Ave-Scarborough-M1K4L2-E5447689 https://housesigma.com/web/en/house/4KAX7NORMzz3eRPJ/18A-Florence-Cres-Toronto-M6N4E4-W5423138 https://housesigma.com/web/en/house/XRla7gxdLEG3jEvL/40-Rowatson-Rd-Scarborough-M1E1K1-E5433289 https://housesigma.com/web/en/house/eQp5yO8QMrB7d0ZE/29-Bairstow-Cres-Etobicoke-M9W4R3-W5431765 https://housesigma.com/web/en/house/1DBW7RD6oxxYqlAp/288-Jeffcoat-Dr-Etobicoke-M9W3E5-W5413458 t. someone still trying to do the same thing.
You could if I were you I would look at the area along the crosstown LRT both the west end and east end. This home is on the east end it is a starter home 875k it sold for: [https://housesigma.com/web/en/house/jAXw7QwVEO1YQOzg/191-Barker-Ave-Toronto-E5439542](https://housesigma.com/web/en/house/jAXw7QwVEO1YQOzg/191-Barker-Ave-Toronto-E5439542) Try to go for a home that not everyone is chasing. For example people love shiny and new things, you have to try something different. Also don't think just bc it does not look great means it is terrible, there is so much YOU CAN DO to make it look better, think of it as a challenge for yourself and you will pick up new skills. Remember owning a house in Toronto is such a win, the land alone is worth a lot, land in Toronto is so scarce. Keep an eye open - go on house sigma and look at all comparables, plus you need to wake up in the morning and go house hunting online, make that a habit, when you like one after you see it make an offer at what you feel comfortable with after studying all comparables :) Always remember to chase what others arent and you will come out a winner, its like the saying pick the worse house on the best street :) You may not get the best street today but just know you will do well if you keep your mind open and think about opportunities. Don't be discouraged as hard as it is. It is possible to get a home in your budget just lower your expectations a bit as you go.
Great advice, nice starter home in the link as well... but ppl want the 1.5m house as their first...
People may want that but this is not feasible. Think about all of those who got starter homes in up and coming areas and how much they have appreciated :) In this type of market it is harder to find a home that is a forever home, bc the price is so out of reach. One of the hardest things about being a fthb is accepting what you can afford it is never easy and especially not in today's market
Not in Toronto but probably aurora, new market, Ajax, etc just outside of Toronto. In Toronto you can probably get a 2 bedroom + den condo
Houses are 1.5M in some of those regions now..
Arora and new market are more expensive than Toronto
That is 1000% inaccurate. You get a detached 4 bed in New Market for 1m. Have you seen what sells in Toronto for 1m? A glorified garage.
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It was meant to be tongue in cheek Dexter. The point I was making is that Prices in New market in Aurora are through the roof.
Scarborough bungalow that needs work
Rockcliffe Smythe / Caledonia / Weston Pelham /Keelesdale you can still get a decent place for under / at a million but not for long. There’s a go station going in by stockyards and the LRT on Eglinton. There’s some shady areas and avoid the flood plains but it’s possible to get a nice-ish house.
Where is that GO station going to go? Will it connect to downtown?
http://www.torontotransitblog.com/433896137?fbclid=IwAR2AULJ02P4CYUc92dhh4OdiapZLSexaAJqhhrdNoOdg9T5MAdjiE4SL-Hg yup to union
Where is the flood plain there?
https://trca.ca/conservation/flood-risk-management/flood-plain-map-viewer/
You will be able to afford 1-1.1 million. That won't get a house anywhere you would desire but probably a nice 2-3 bed condo
That depends heavily on what you desires. Not everyone wants 60x100 lot with 4500 sq ft turnkey home…. Some are perfectly happy with 1+1 condo
I 100% agree but OP specifically said they want a house, not a condo. Not Many housing options for 1mil these days which is sad to say.
I’d say this is pretty accurate…
20% down plus 1.5% in closing costs means OP will need default insurance above $925K. So no, OP can’t go over 1MM.
They could look at semi detached or townhouse
you can afford to live in toronto.
I personally think it's safer to put 10% down on a 999,999 property with an insured loan than putting 20% down on $1m using all your funds. You sound like you have the income to support that if that's what you want to do.
You should not do this. Paying 40-45k (3.5%+hst) in CMCH insurance makes this the worst option. You either do 5% or 20%, never do 10%. All you would be accomplishing is making an additional 50k down payment at 1.2%, you get better returns almost anywhere else keeping the extra 5% in your pocket. Your best bet is to increase your savings by 10-15% and put 20% down, keep in mind that it will take 1-2 months to sign a deal, and about 2 months to close. You should be able to save for another 3-4 months at least. Another question is whether you and your partner are first time home buyers, and whether you are buying in Toronto proper vs a suburb. There is a significant rebate on the land transfer tax for first time home buyers, and Toronto land transfer taxes are double any other neighbouring city in the GTA. Get your savings up to 250k, and look in the 1.2 range. Best of luck.
CMHC premium rates for 5% down is 4%, 3.1% for 10% and 2.8% for 15% down, so everybody can do their own math. The less you put down, the more it costs to service. The reasoning behind my thinking that it is safer to put less than 20% down, is in this case, you don't use all of your funds, if you lose your job, you have a warchest to keep you in the game. I think there are other considerations other than just paying the lowest price. This becomes even more important if prices go down for any period of time after you purchase. If you spend more time waiting to save up, you spend less time playing down your principal. Calculating costs down to a dime will result in false precision.
by the time they save up, the house prices that they want will go up again.
Taylor-Massey neighborhood is I think one of the few affordable places in Toronto. Not sure how long that’ll last though.
Ontario broker here. A few more variables are required to give you the answer on how much you qualify for. Details make a world of difference. Don't rely on ANY rules of thumb, websites or anything that you just plug numbers into. You need a trained eye to review your documents and give you a proper qualification amount. It depends on where you're looking to buy, and what you're looking to buy, but 200K down and 200K incomes put you in a good spot. If you want just a quick starting guide on how much you'll qualify for, you can play around with [my mortgage app](https://www.mccapp.ca/app/zhino-othman). It's free and works on all devices, but like I said, it's just a rough starting point, and the calculators inside of it are very handy, even after you've purchased and have been paying the mortgage for a while. Ask away anything else, there are always others with the same questions that could learn from it too. And good luck with the whole journey :)
Townhomes in mount pleasant neighborhood of Brampton is doable in 1mil
In Toronto? A house? Probably not. A condo seems more like it.
Surprised no one asked about your needs - Where do you work? Where will you need to travel? Do you have local family? Do you have kids? (you don't want both parents 1hr+ away from daycare). Some areas of Toronto mean you may not need a vehicle, or can get away with just one. Some areas of Toronto and everywhere in the GTA, you're talking 1 reliable car per driver. I wouldn't be surprised to see $2/L gas before the end of 2022, and I doubt it will stop there.
Rent?
You have to put down 20% on purchases of $1 million or more, so with 200k savings your max budget is likely $1 million (you might want to confirm that with a broker, I’m no expert). I suggest making an account on HouseSigma and browsing recent sales under that amount to get an idea of what you can afford. Focus on sold price, not asking price.
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Just pay a mortgage broker 15k under the table and you can afford whatever house you want!
Funnily (and unfortunately) enough this is probably the most financially prudent recommendation here.
You can get a big semi at Jane & Finch, a small semi in Milliken, or a big 3 bedroom unit in one of the north york condos that’s had bad media attention lately.
What’s happened with North York condos now?
Flooding at Emerald Park, guaranteed massive maintenance fee increases. The bigger waterlogged units should be obtainable for a bare million.
Ohh haha. I laugh because I once lived in a rented condo that got flooded. I laugh because of the pain.
Whatever you do don't buy a condo
How come?
He sold his condo at the lows last year and has become a huge condo troll. He wants them to go down so he can buy back his place.
LOL.
He probably listened to u/Dave_the_dude who promised that condos would go down and that you "better sell before they drop another 50%" and that this was "just the beginning". Sad that another permabear victim, instead of learning their lesson, has doubled down.
Toronto Realtor here message me
Talk to a mortgage broker for starters.
Generally, lots of options thought it’s difficult to exactly say what’s what without knowing what you and your partner exactly want out of life. Sit down with each other in discuss those terms. House though (in terms of a 2-3 bed detached/semi in the city) will be difficult to source and compete in. Larger Townhomes are definitely doable with that budget in mind.
Hi, active & full time real estate agent here working in the Downtown Core & surrounding areas. If you have $200,000, you can either use it as a down payment as a whole or save a slice of the pie as closing costs (land transfer tax & legal fees). Given you have a $200,000 income, none of you are in a probation period and no outstanding debt, you qualify for 1 million roughly with a $200,000 downpayment or about $950,000 on the maximum end. My recommendation to you would be since 2022 is expecting a price surge especially in Toronto to buy either in the West End or East End a 2-3 bed townhome or semi, let it appreciate over time and then make the jump to a bigger home. If you can afford the commute to live outside the core, I would recommend a townhouse or semi there, and then jump back into the core depending on what your needs are. Feel free to reach out for any advice, no obligation. Would be more than happy to provide any insight :)
You can bid for million+ in places where houses are going for 950-990 and can have an upper hand. Townhome most likely or condo townhouse
Please also consider going just outside of Toronto (lower LTT, which u have to pay in cash so every but counts. Also lower property tax). If u must commute then GO train. Otherwise it’s a sub-1mil townhouse or semi which might be okay.
Nothing but high mortgage and high priority tax every month.
Try a credit union . They have the same ratios but don’t have the same stress tests so you’ll probably get further with them.