MovALot

If I could possibly defuse the situation, as I wouldn't want to hijack another persons post.....I am not a 'newie' to immigration, I am from the UK, been in Oz for last 4 years, query started over a genuine question on cost of living on a Salary contract offer (of which I accepted) after some very useful comments on the previous thread.

Don't worry I won't be borrowing any money, certainly not $1M I have 3 houses in 2 country's to pay mortgages on as it is

Eddmac

You totally misunderstand.

If you had read and understood my post, the mortgage amount was given as an indication of spending power that you could achieve with an income of $164k pa. It was not an offer of mortgage advice nor a suggestion of what anyone, let alone a new immigrant should do. I agree that maxing out what you could borrow would probably not be the best move.

To the op, depending on your job, expected standard of living, overheads, debt etc, your quoted income will be seen as good by some and not good by others.

To Movalot, if the contract offer as stated is genuine, I would expect that you could have quite a high standard of living with your quoted amount.

Eddmac

Best of luck with the move then!

MovALot

Thanks Eddmac, looking forward to the challenge of Calgary (only visited twice before), out of the south into the north (sounds like game of thrones eh!)

Eddmac

Lol, hope you can cope with the winters, coming from OZ

iaink

There is no pattern to it. Truck driving and anything related to construction seem to come up with monotonous regularity, but $80 an hour is probably something in the oil industry, and that is a notoriously cyclical "boom and bust" business to be in. I was laid off from the job that brought me here on a work permit 3 months after I got my PR. Shit happens.

iaink

I think perhaps there were misunderstandings on both sides...
The calculations were not in doubt, the wisdom of taking on such a commitment was.

Eddmac

Apologies to the op for hijacking this thread in advance



I actually said you could buy a house at 1.4million with a 20% deposit

I used this calculator, changed the 6% interest rate that is the default to a more normal 3% (although you can get 2.84%)
changed the amortization from 25 to 30 years, added in property taxes and heating costs - left out cars/debts as a sensible person keeps these to a minimum (LOL) and guess how much this more sensible mortgage calculator quoted?

$1.2million house (no I'm not laughing, seriously )
$900000 mortgage, monthly repayments of $3684
Now if you're bringing in $13.7k per month, this seems quite reasonable

Eddmac

No misunderstanding on my part, this was plain offensive, I have moved on though and I am now laughing at it

Perhaps it would be good to create a(nother) mortgage discussion thread and move all this tripe out of here and into that?

iaink

You do realise that mortgage interest rates can go up, right?

The current long period of low rates is historically unprecedented.

How does your 1M mortgage look with an 8% rate

iaink

I think there was. Ive know AX a long time, and he really doesnt do offensive. Not like some others I could mention anyway

Eddmac

Right, I get the point, AX is your mate, he didn't MEAN to be offensive.

Seriously though, I can't see the point about interest rates going up and about not being able to afford the mortgage , have I ever, in any of my posts, suggested that anyone should actually take out this mortgage?

(Note: I ran the ScotiaBank calculator on a 5year fixed, so it wouldn't go up for 5 years, although a hike from 3% to 8% increases the mortgage from $3800 to $6500 I would still expect this is affordable on a $13.7k monthly income, which would also "probably" go up in five years lol and if you pay bi-weekly it will be paid off even faster - this from the Scotiabank website! )

I'll paraphrase myself here again

I am quoting a hypothetical property value that you could hypothetically achieve with the stated income. This is solely for the purposes of measuring how much that income is "worth".

This is not intended as mortgage advice, I'm not suggesting that anyone actually does this, standard terms and conditions apply, bla bla bla

I think that the poster in question MovALot actually "got it"
(hopefully anyway )

Anyway, this is my last attempt at explaining that this was never meant to be mortgage advice, so please stop treating it as such!

Bored now, off to get flamed on a different thread

orly

uwotm8?

>4x earnings? It's not affordable (and it'll be positively nightmareish when the interest rates go up...which they will)

MikeUK

Nope... just wouldn't get the loan.....

they get very nervous once your loan to income goes outside of their approved ratios, nothing to do with affordabilty

Atlantic Xpat

Did I mean to be offensive? No, not really. Do I believe that posting that a $164k salary could get you a $1.2-$1.4m mortgage is stupid? Well, let me revise my opinion to say "Its's a bit silly. Hopefully that will be less offensive.

Anyway, the OP seems switched on enough (as one would hope that someone making that sort of dosh) to understand that they should be able to keep body & soul together on $164k p.a.