How Much Home Can I Afford?
But what does this actually mean for you? What is the average household income you need to generate in order to own a certain type of property?
You may be familiar with the GDS Ratio or Gross Debt Service Ratio: This calculation adds up all your expenses and divides that number by your entire household salary. This model is based on a 20% down payment.
If your GDS works out to be 32 per cent (or less) a property officially falls in your price range.
Click on the link below to view interesting information showing the average home prices in the GTA and other areas across Ontario in correlation to the annual income that is required to qualify for a mortgage:
Also, if you are interested in what annual income is required for home ownership in some select major cities in the United States, please follow the link below:
9 News-Major U.S. cities housing cost
If you are living in the GTA and just starting out or looking towards retirement, moving to the Collingwood and Blue Mountains area may be a great opportunity. Detached homes and Condo prices are far below what you would be expected to pay in the Greater Toronto Area, but they are rising.
Contact Jane or Lorraine for more information.