Is buying a 1 million dollar home realistic if you have a combined income of about $220,000? (CAD)

Question

Has anyone bought something with a similar income and home price?

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Eeeeehhhhhh.......I think that us really iffy. Like, on paper, it might be fine. But what about when you have a car repair bill? Or you need to replace the furnace or an appliance?

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My teachers in hs told us to never buy a house worth more than double you and your spouse’s combined incomes

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What do you guys do in order to afford that 😱

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It's not the cost of the home. It's how much you're putting down. More than 20% is definitely recommended to live a comfortable life. Don't forget property tax plus bills plus internet and quality of life.

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I think most of the people replying don’t know what the housing market or average income is like in Canada. This is definitely doable on your income. A couple years ago I bought a house for $220 000 when our household income was $70 000, way more than the “twice your income” other people are suggesting. While our income is a bigger percentage of the house cost than yours, we only put down 5%. Obviously you will be putting down at least 20% so your mortgage will only be $800k. Most people go for a 25 year mortgage here. At current mortgage rates, your monthly payment will be less than 25% of your pay, which puts it within your means. Even if the interest goes up to a more normal rate of 4-5%, it will still be attainable. The average household income in Canada is only about $60k, so if we all followed these rules, nobody would be buying homes. Even condos and trailers are more than $120k in Ontario.

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That would be way more than I would want to spend with that salary. It depends how much you can put down too, but personally I’d never want to go over half of our combine salary.

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Adding more info:
-Yes we’d be putting at least 20% down.
-$220,000 a year between the 2 of us is based off of us only working 9/10 months of the year. We can work a fully 12 months if we choose which would be a higher annual income
-I make about $1500 a week after tax 
-my partner makes about $2500 a week after tax

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It honestly depends on how much you have saved up and what other bills you have. You could definitely make it work, but you might have to go without some other luxuries for a while.

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It’s possible but it depends on how much you can afford to spend on the down payment and mortgage. If you do 20% down that’s $200,000 and around $4,500/month for the mortgage for 15 years (not factoring in interest)

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I guess it would depend on the amount of your down payment, how many years your amortization period is, are you paying monthly or biweekly, do you qualify as a first time homebuyer? Then I would look at the amount you spend on debt repayment, ( do you have student loans, car loans, credit cards....) do you have a realistic savings plan for your retirement? Are you planning on paying for a childs education? What will your homeowner insurance cost you, will there be extra transportation costs with a move ? There are many more things to consider rather than just your income.

Is buying a 1 million dollar home realistic if you have a combined income of about $220,000? (CAD)

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