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What can I (really) afford?

A Calgary home purchase income guide

Many would-be homebuyers find the home of their dreams, only to wonder, “can I afford it?” Canada Mortgage and Housing Corp., as well as many major banks, recommend spending no more than 30 per cent of income on housing, including mortgage (principal and interest), property taxes, insurance and utilities. To help, we did the math for a typical detached home in each region of the city.

City Centre

  • Required Down Payment: $34,461
  • Recommended Household Income: $155,760

North East

  • Required Down Payment: $18,738
  • Recommended Household Income: $87,520

West

  • Required Down Payment: $36,653
  • Recommended Household Income: $165,240

South

  • Required Down Payment: $23,670
  • Recommended Household Income: $108,920

North

  • Required Down Payment: $21,529
  • Recommended Household Income: $99,640

North West

  • Required Down Payment: $26,971
  • Recommended Household Income: $123,240

South East

  • Required Down Payment: $22,411
  • Recommended Household Income: $103,440

East

  • Required Down Payment: $17,539
  • Recommended Household Income: $82,280

*All calculations assume for a five per cent down payment (which necessitates mortgage insurance), 25-year amortization period, 3.50 per cent mortgage rate and no outstanding debts. Estimated property tax, home insurance and utility cost values are factored into the calculations (via www.ratehub.ca/mortgage-payment-calculator). Recommended income is based on calculation of housing expenses (mortgage, utilities, property tax and home insurance) as 30 per cent of gross income. YTD Benchmark Prices are accurate as of Sept. 1, 2018.

One thought on “What can I (really) afford?

  1. This is a great chart for quick approximations on anything below $500,000 – however, the minimum Down Payment required for homes over $500,000 has changed. 5% on the first $500K , and 10% on the amount exceeding $500K. If we take the city centre as an example… The minimum Down Payment is $25,000 (5% of $500k) + $18,922.50 (10% of $189, 225) = $ 43,992.50 is the required down payment. With all the regulatory changes Canadians have seen, it is a very easy mistake to make.

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