Ever wondered what it really takes to snag a $500,000 home in Canada in 2023? You're not alone. Let's dive straight into the facts and figures without the fluff.
In this breakdown, we'll cut through the complexity and get straight to the essentials.
"Before we get started, give us a nod if you're on the same page with the info. Now, let's get real about the dollars and cents."
To get your mortgage approved in Canada, you need to understand two things:
"Now, the stress test. It's like a financial reality check. We're talking about qualifying your payment at a higher interest rate than you're getting."
So, that 39% going to your mortgage? After the stress test, it's more like 35 or 34%. Sneaky, but it keeps you from panicking when interest rates jump.
"Let's do the math. How much moolah do you need to rake in to qualify for a $500,000 mortgage in 2023?"
Assuming a 5.59% interest rate over 25 years, you're looking at a minimum gross income of $126,751. That covers everything—property expenses, condo fees, and keeping the lights on.
"Hold up, insurance matters. If you're going in with 5% down, you're paying up to 4% of the loan amount in insurance."
Jump to 20% down, and you dodge that insurance bill. But beware, it comes with its own quirks involving interest rates and mortgage terms.
"Can't meet the numbers? No worries. Here are some moves to play it smart."
"If this info's gold, give us a thumbs up. Now, let's turn those homeownership dreams into reality."
For tailored advice and hands-on help, reach out to the Flow Mortgage team. No need to be uncertain—let's make your dream home happen.
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604-262-3500
info@getflowmortgage.ca