Re:Canada bans foreign home buyers for two years
by FireBeyond on Tuesday April 19, 2022 @08:07PM
(#31091088)
You are not going to get an 800,000 loan with a repayment of $4,000/mo on a 120K income. For one, that's in jumbo loan territory with more onerous requirements for DTI above and beyond 20% down payment.
You haven't factored in property taxes, home insurance, or anything. Putting these numbers into a calculator, your monthly loan payment is going to be closer to $5,400 a month.
You're taking home $6,800 a month.
You're not living on $1,400 a month in the Bay Area.
No bank is giving you this loan.
Federal actual rate 16.5% (24% marginal)
CA State actual rate 6.4% (9.3% marginal)
Medicare rate 1.45%
OSDI rate 6.2 %
CA SDI rate 1.0%
Total:31.55% total before tax deductions and tax shelters
If your mortgage is ~40%, you have ~30% left over.
Per month, this is 4,000 for a mortgage, 3,000 taxes, and 3,000 remainder.
A 4,000/month mortgage covers a 800k loan on $1 million dollar home.
You don't get a lot of house in the bay area for 1 million, So if you are single earning this much, you are looking at condos.
If have two similar earners, you just double everything. E.g. 2 million dollar house with $6,000 per month remaining income.