How Much Home Can You ACTUALLY Afford In Canada (By Salary)

I was once someone making 250k in Canada. House prices, general cost of living and taxes (with low return) made me move out of Canada. Until Canada can get healthcare in order and figure out this chaos that is observed in the real estate market I have zero plans to come back. It was ridiculous paying over 50% in taxes due to my income, having zero ability to buy a property for my family and seeing the insane long lines in healthcare to talk to a specialist when needed.

Pretty sure like me many will have to do the same. It’s super sad. I love Canada, I decided to become a Canadian in the past but this pseudo-government treating people like money machines without getting nothing in return is a no no.

"Required income"... is that your gross or net income?

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family...

Hello, I have a few questions,
I am a Canadian citizen with Canadian passport, I used to live in Canada for 10 years with my family but we left Canada in 2015, and we recently moved back to Canada again.
I am looking to buy a house which costs around 700k and I have 20% down payment of the house ready ($150k CAD ready), but the RBC bank wants proof of income of at least a salary 100k a year and I can’t show that.
I’m planning to start my work as an Uber driver in the next few weeks, but could I get approved to get around 500k mortgage from a bank without having to show proof of income?

RBC bank mortgage realtor told me because Uber is considered as “self employed”, the mortgage realtor also told me that bank looks at Uber income after at least 1 year of work because it is called “self employed” type of job., and I don’t want wait a whole full year (I want to buy this house sooner).
They said I could get a mortgage from a private lender but the mortgage rate would be high at around 10% (which is around 4% higher than bank rate), is there any way to get approved by the bank for a person like me with no proof of income?

By the way, the house I’m looking at is a detached house that has a walkout basement with separate entrance, I’m planning to rent upstairs to cover the mortgage and I go live in the basement.

Thank you

You should look at the housing marking in Prince Edward Island you will be horrified,

fraud. Lied me about advertising fees for making videos

fraud. Lied me about advertising fees for making videos

I would recommend you removing these embedded subtitles. These are too hard to follow at that speed and confusing

The average home price in Canada is around 700k$ according to a WOWA report. According to the government census, a top 10% income in Canada hovers around 100k$.
According to your video, to afford the average home in Canada, you need to be making around 175k$.

I'm sure there are some fortunate folks who make that kind of money, however I'm speaking for the bottom 90% of the population. How can I afford a house in Canada today Nolan?

Let me make this quick. You can afford basically nothing unless you have a ludicrous salary or are bringing tonnes of equity with you from another home. Goodbye

promo sm

I can't. At this point I can't even afford rent if I had to find a new place.

I have renters wanting to stay put because their rent rate is from 4 plus years ago. They were actively looking to buy but after last months rate hike decided to stay put cause its become cheaper

please people don't buy homes at the absolute max you were approved for.

Hiii 👍I completed my bachelor's in civil engineering with 8.60 cgpa in july 2022. I want to make a career in real estate field. Can you tell me which colleges provide this course & most important thing is it possible to get visa or reject because i'm an international student from india. Is it irrelevant course or relevant course to take a decision after completing civil engineering background

(If this info helps anyone here) I recently bought a 800 sq ft 2 bed 2 bath condo in Edmonton -
- my salary is $101K (pre tax)
- TD bank approved me for a $150K mortgage
- my condo is $125K (condo fees 520/month)
- I took a $100K mortgage (5% fixed rate)
🙂

Great information! Its all come down to your T4 income. Given that most Canadians rely on their T4 income which is generally under $100k household income, and given the situation with the housing market, I don't see how the next generation of Canadians can escape the poverty trap with the numbers that you shared in your video. In short, they are doomed.

Hence why all young people are moving out of Vancouver…..ridiculous

When are you putting in an offer on that home in Whistler? :)

Cool App, thanks for sharing!

Job market is collapsing. Also no jobs for new immigrants. Interest rates will fall

People forget that if you spend $100, you have to earn $140.
Likewise, when you buy a house for $500,000 it costs you more like $900,000 after you consider tax and borrowing costs.

How much of the allowance my wife gives me can i use to qualify?

Bendigi has got a great potential business model with that app. I'm sure everyone in real estate would want that calculator now. Is this a new venture for you @Nolan?

so funny, good luck to all the 20 year olds

This is a great outlook - includes the GDS/TDS, taxes and other fees. Even as a non-landlord or aspirational landlord, this is super helpful as I look at properties and try to keep my GDS/TDS at 25/30% if possible

A Good addition would nof been to show which portion of the population earns what is required at each price point

I owe 1.375 million on 3 mortgages and net about 70k/year as a small business owner in home construction. My wife hasn’t been employed since buying the first house. We bought the first two houses cheap (2010,2015) and then paid way too much for the last one (2022) but it was an emotional purchase (for family members to live in because rental options were brutal) using equity from the first two homes. Combined mortgages are 6400 and we bring in 5k in rent monthly for the two rentals with great long term tenants. Yes, I’m essentially running a Ponzi scheme given the massive debt load versus relatively low income, but I’m resourceful and we will be ok. I could work a lot more if necessary and the odds of a recession effecting my work load are slim to none since I work almost exclusively for wealthy individuals. A modest estimated value of our 3 homes, given today’s instability, is 1.875 million so we are still doing pretty well.

"$100,000 dollar for every $35,000 dollars in income that you make" means that you only want to be 2.85x leveraged.

Salary / 35,000 * 100,000 = mortgage
Salary * (2.85) = mortgage

How are people buying such expensive houses??? The medium income in Canada is 685000, this makes no sense. I am baffled by Canadian real estate.

holy , i must say brother what an app!

Is the required income net or gross?

Nolan, thanks for this! When I got my home 20 years ago - and all my other properties afterwards- I was qualified with my income, spousal support AND child tax credits- all had to be proven by court documents and at the time I didn’t have that and they used an affidavit and bank statements. If you have a part time job they can use that too as well as Basement income etc or even a co signor

Buy a big house. Rent out basements and afford the payments. Thats how majority of the new immigrants in fraser valley are affording the houses.
However, lets see how the new rates impact the valuation in the short term. The income levels required are absolutely insane.

Great video thanks! ❤