hh619

Yorkiechef - Good point. Mine in the UK is approx. 30% of my salary, but I have an expensive car which is almost as much as the mortgage :O

I think 35-40% would be ok. I think i need to find a job which pays $100k+ wish me luck

raindropsandroses

There are so many helpful YouTube videos and other resources that its not too bad, there are some things I wouldn't touch as they have to be done to code, but the basics aren't too bad

In that case, how about approaching a place with dated decor (which just needs cosmetic stuff done) and offering to repaint in the landlords choice of colours for a rent reduction?
It would meant they could then rent for more after your year of renting is up as the place would be all smart and spiffy. I know a lot of people who have done that, albeit in the Maritimes not Ontario, but might be worth a go.

Siouxie

Try using one of these:

https://apps.cra-arc.gc.ca/ebci/rhpd...o?lang=English

TaxTips.ca - Canadian Tax Calculator for 2016, 2017 and earlier years includes most deductions and tax credits

Using the official one (CRA) it approximated that on $70,000 the EI and CPP monthly deductions would be around the following amounts:

CPP deductions 274.31
EI deductions 95.08

With monthly take home pay (presuming no Union fees etc) of around $4,298.72

There would likely be a slight variance but it gives you an idea (I believe you could also perhaps claim something for your wife if she is not working). I'm not up to date on employment taxation, so apologies for not being able to give you a more definitive answer.

JamesM

I pay 40% on my rent. I'm lucky as I have a pretty good deal. It's not an exact science as I'm in commissioned sales so some months I earn more money but factored on my basic salary which is marginally higher than the average person I pay 40%.

I think people who live Downtown Toronto alone and rent condo's are in the main paying 40 to 50% of income on rent unfortunately. Much easier for couples who may hit the magic 25 to 30% spot.

Rental prices of Downtown Condo's have gone up about 20% in the last two years due to the squeeze on inventory caused by Air BnB.

JonboyE

matt88's figure for net pay is about right. He can claim his non-working spouse's personal tax credit. He will need to consider if there are other deductions but this is going to vary by employer.

scilly

What about Extended Health Insurance and/or Dental Insurance?

If Ontario is like BC, the provincial medical scheme (OHIP or MSP) doesn't cover everything.

What are prescription drug costs like in ON? They're not covered under MSP here.


Tenants' Insurance on goods and belongings?

scrubbedexpat091

30% is what the financial folks say for max housing % of income, however in certain Canadian city's that isn't always realistic unless really high income.

We are in Vancouver and we pay currently 59% of our after tax income just towards rent.

Car insurance, hydro, renters insurance, transit pass, gasoline, etc eats up approx 30% of what is left after rent.

Sometimes it's simply not possible to keep rent % low and comfortable if your job is in a high cost city, can't move somewhere cheaper etc, part of life in certain areas of Canada these days.

hh619

Thanks JonBoyE, thats definitely food for thought! I'll have a research and see what tax relief we can get.

hh619

Wow, thats a very high percentage! Do you have to make cut backs elsewhere to cover your rent?

hh619

Thanks for your reply JamesM.

That's reassuring. I think 35-40% would be comfortable.. obviously if we can get lower then that would be great.

I know it'll be harder in the first year or so to find our feet, but hopefully after that we'll be in control of spending and be able to plan better for the future.

hh619

Eeek! There are a lot of deductions to consider!! Thanks for taking the time to do the workings out for us. I'll save the links for future reference

christmasoompa

Short answer: yes, he does.

Long answer: have a look at Jsmiths posts to get a better idea of how he manages.

HTH.

BristolUK

So $2000 rent from $4607 leaves $2600 or $31200.

Different province but we were a couple with two teens in school (then one) for a few years until around 2012 and our best year's net income was just over $21000. No rent/mortgage but insurance, water and property tax was almost $300 a month.

Biggest problem - prescription drugs. But if you have employee coverage the problem is gone.

We had non demanding kids, good money managing skills, didn't run a car, and we knew things would get better.

We would've had a much better time with drug coverage and $10k more than than our worst year, let alone our best year.

We're clearly an exception to the rule though and there were some things that were not fun.

On the other hand, that extra $10k is the difference between our best year and your lowest salary in the range you quoted.

MarylandNed

Here's another one that calculates EI and CP:


Tax Take Home Pay Calculator for 2017.xls

hh619

Hi BristolUK, thanks for your reply. That's reassuring. I guess it takes time to fully understand and gauage what money is actually coming in and going out.

I will do as much planning as possible. If we move and struggle with rent, we can always downsize