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"Affordable" mortgage

"Affordable" mortgage

Old Jun 27th 2006, 3:07 pm
  #46  
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Default Re: Flexible mortgage's

Originally Posted by Mans
Thats exactly the view I took.

But don't get too carried away....its easy to borrow......what if we have a property crash, nightmare of a tennant or void rental periods (if you decide to rent a property)....just make sure you do the sums and can take the risk.
If it works out...which in the long run, I think is a pretty good bet...things will work out great...just make sure you can handle/afford the shorter term problems of servicing the debt.

Rgds
Mans

Yes I agree - do your sums - make sure you can service the debt - with regards to property crash it does not happen overnight so you have to continually monitor the proprty prices etc and if you think the market is slowing down then probably wise to cash in early. It is a risk but then the rewards are directly propertional to the risk you are willing ot take in my view
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Old Jun 28th 2006, 9:25 am
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Default Re: "Affordable" mortgage

Originally Posted by glenlivet



Hi, I'd like to resurrect this old thread of mine again to see if I can get some more opinions. Thanks again to everyone who has already shared some pretty personal information. Some really good points raised already. Cheers

To summarize, what seems to be suggested from previous posters is that we should be looking to pay out between 20-30% on our net monthly income on mortgage & property tax payments, to still be able to have a decent standard of living without having to watch every cent. This is based on average costs of living for a family of 4 without any other major debt payments to think about.

When replying can I ask that posters indicate whether they are commenting on gross or net income and whether their % payments include property tax or just mortgage payments.

Thanks,

Roy
Hi again,

Anyone willing to comment of the estimate of 20-30% estimate of net monthly income as a reasonable amount to consider as repayment of mortgage + property tax. Compared to some other posters I'd rather not throw caution to the wind as I have the family to consider, and would like to be able to have some money left each month to enjoy the things that the Okanagan has to offer. (and no, i'm not just referring to the OK wine )

Cheers, Roy
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Old Jun 28th 2006, 10:32 am
  #48  
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Default Re: Flexible mortgage's

Originally Posted by Mans
Thats exactly the view I took.

But don't get too carried away....its easy to borrow......what if we have a property crash, nightmare of a tennant or void rental periods (if you decide to rent a property)....just make sure you do the sums and can take the risk.
If it works out...which in the long run, I think is a pretty good bet...things will work out great...just make sure you can handle/afford the shorter term problems of servicing the debt.

Rgds
Mans
And all the other costs of renting out houses, maintenance, agent's fees & voids.

It all adds up but that isn't to say, not to do it.
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Old Jun 28th 2006, 10:48 am
  #49  
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Default Re: "Affordable" mortgage

Originally Posted by glenlivet
Hi again,

Anyone willing to comment of the estimate of 20-30% estimate of net monthly income as a reasonable amount to consider as repayment of mortgage + property tax. Compared to some other posters I'd rather not throw caution to the wind as I have the family to consider, and would like to be able to have some money left each month to enjoy the things that the Okanagan has to offer. (and no, i'm not just referring to the OK wine )

Cheers, Roy
What you are asking for is pretty tough.

depends on many factors....but mainly your income and expenditure....

Income........if you are a low earner, you mortgage payments could be propertionately higher, as a high earner it would be lower.

Expenditure....depends what one generaly spends....some families eat out more than others, some go on more holidays than others, some have kids...some don't...etc etc.....

As you can see from above posts...everyone is paying different amounts...some very comfortably...some just breaking even...really depends on individual circumstances.

Its reasonable to budget for 20-30%....but at the end of the day it depends hugely on your income and lifestyle.

HTH
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Old Jun 29th 2006, 1:31 pm
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Smile Re: "Affordable" mortgage

Hi Mans,

I know I'm asking a very general question so glad to receive any advice. Your last line is good enough for me. A mortgage broker has quoted a maximum mortgage amount which would mean paying out 45% of our monthly net income on repayments and property tax so it's good to get a feel for what's reasonable when you get figures like this thrown at you.

Thanks,

Roy

Originally Posted by Mans
What you are asking for is pretty tough.

depends on many factors....but mainly your income and expenditure....

Income........if you are a low earner, you mortgage payments could be propertionately higher, as a high earner it would be lower.

Expenditure....depends what one generaly spends....some families eat out more than others, some go on more holidays than others, some have kids...some don't...etc etc.....

As you can see from above posts...everyone is paying different amounts...some very comfortably...some just breaking even...really depends on individual circumstances.

Its reasonable to budget for 20-30%....but at the end of the day it depends hugely on your income and lifestyle.

HTH
Mans
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Old Jun 29th 2006, 1:50 pm
  #51  
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Default Re: "Affordable" mortgage

Originally Posted by glenlivet
Hi Mans,

I know I'm asking a very general question so glad to receive any advice. Your last line is good enough for me. A mortgage broker has quoted a maximum mortgage amount which would mean paying out 45% of our monthly net income on repayments and property tax so it's good to get a feel for what's reasonable when you get figures like this thrown at you.

Thanks,

Roy
I think 45% would be pushing it.
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Old Jun 29th 2006, 1:59 pm
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Default Re: "Affordable" mortgage

Originally Posted by yonk
I think 45% would be pushing it.
I agree with Yonk that 45% is pushing it. I know a mortgage consultant ( an ex college friend) now working as an independent financial adviser in the UK he said that 42% is the maximum one should go for.

But like Mans said it depends on your income and lifestyle
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Old Jun 29th 2006, 2:19 pm
  #53  
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Default Re: "Affordable" mortgage

Originally Posted by Hit&Run
I agree with Yonk that 45% is pushing it. I know a mortgage consultant ( an ex college friend) now working as an independent financial adviser in the UK he said that 42% is the maximum one should go for.

But like Mans said it depends on your income and lifestyle
All pretty relative though isnt it? I mean if you're earning $30,000 a month, then you're not going to miss half of it too much. But if you're only getting $1000 then you'd be skint.
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Old Jun 29th 2006, 2:40 pm
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Default Re: "Affordable" mortgage

Originally Posted by Bleech
All pretty relative though isnt it? I mean if you're earning $30,000 a month, then you're not going to miss half of it too much. But if you're only getting $1000 then you'd be skint.

Spot on...where 25% could be too much for one person.....50% may be more than affordable to another person.

No Financial Adviser can state what is the correct figure as a % of net income. It depends on too many factors.

Gllenlivet..if 45% seems reasonable to you with "your income and lifestyle"...then there is no reason why not to go for it.

Good Luck
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Old Jun 29th 2006, 2:45 pm
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Default Re: "Affordable" mortgage

Originally Posted by Bleech
All pretty relative though isnt it? I mean if you're earning $30,000 a month, then you're not going to miss half of it too much. But if you're only getting $1000 then you'd be skint.
FERK me Bleech you got any jobs going?
Seriously we're paying out around 40% at the moment (soon to go down to 30%) and thats plenty!!!
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Old Jun 29th 2006, 2:48 pm
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Default Re: "Affordable" mortgage

Originally Posted by Butch Cassidy
FERK me Bleech you got any jobs going?
Seriously we're paying out around 40% at the moment (soon to go down to 30%) and thats plenty!!!

Bleech... I'll work for you part time..thats plenty for me
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Old Jun 29th 2006, 3:00 pm
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Default Re: "Affordable" mortgage

Originally Posted by Butch Cassidy
FERK me Bleech you got any jobs going?
Seriously we're paying out around 40% at the moment (soon to go down to 30%) and thats plenty!!!
Acuually I'm looking for a new butler
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Old Jun 29th 2006, 3:10 pm
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Default Re: "Affordable" mortgage

Originally Posted by Bleech
Acuually I'm looking for a new butler
Does it pay 30k a month?
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Old Jun 29th 2006, 4:29 pm
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Default Re: "Affordable" mortgage

Originally Posted by Butch Cassidy
FERK me Bleech you got any jobs going?
Seriously we're paying out around 40% at the moment (soon to go down to 30%) and thats plenty!!!

Think I'll play it safe and go for between 20 - 30 %. I know this topic is all relative but, without giving out specifics to the whole forum, I couldn't figure out a better way to guage what an affordable amount would be. How did other people figure this out before landing? Did your mortgage brokers/banks give advice or just keep telling you what the maximum mortgage could be, like the ones I've been in touch with so far. From the responses received I reckon that for an average, single income family of 4, with no other outstanding debts, to stretch beyond the 30% mark would be pushing it.
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Old Jul 1st 2006, 3:37 am
  #60  
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Default Re: "Affordable" mortgage

Gosh this is really bringing me out in a cold sweat!!!

We live pretty simply in a modest home and share one car and have 3 kids in Nova Scotia....our monthly income is pretty poor- maybe take home pay of $450 per week and even though we are careful we couldn't afford a mortgage at all!!! Luckily we don't have one on the house..

I'd say that if you are earning an average wage then surely anything more than 20% is stretching it??

Interesting thread BTW!!
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