Use this calculator to see what you could afford.
House prices have skyrocketed in the Okanagan making most single detached dwellings with two floors over $650,000 and nothing less. Which means you need to make over $10,000 each month. Holy crap! This was a huge holy shit moment for me as I am in need of a family home with two floors to run my daycare and as a successful business owner I make around $7000 a month. That is damn good money, not according to the banks and the damn stress test.
The Okanagan is now one of the most expensive places to live and it just keeps getting worse. You also require 20% down to avoid paying the mortgage insurance which is at least $120,000 all on its own. If you don’t have the $120,000 your stress test is even more screwed up due to a higher mortgage payment every month. Not including bills, feeding your family and trying to enjoy life!
The stress test has got to go or none of us will ever be able to afford our own home, and for the amount we all work each day we deserve to own our own slice of paradise. Time for the mortgage fat cats to take another look at what they are doing to individuals looking to buy their homes and give us a break. When a person defaults on their mortgage the banks take the home and sell it anyways so they are not losing anything by allowing us to make our own informed home ownership decisions.
This article explains how unaffordable the okanagan has become.
Hopefully they see this and give the banks more lending power and take away the dreaded stress test, I have worked way too hard to not be able to afford my own home.
I hope to own my own home within the next year so right now we are saving a down payment and paying off debt to become completely debt free before becoming mortgage holders. I will be posting updates on how we tackled our debt and saved for our home, also any loop holes we find that can help you meet your goals as I am doing some serious research on this!