Sorry if i had given the wrong link.Check this out http://activerain.com/bloghome

http://activerain.com/ ??

I just read a article in the real estate network site- "Active rain" and please refer to that site for further information.Right now , I don't remember the Topic URL and i will definitely let you know if i get that.

Hey money advice,
Welcome to the forums here!!

Do you have any URLs to go with what you're saying?

First of all , i wish to congratulate Mr plei1234 for joining this lovely community and all those who are already a part of this discussion board.Angela has made a valid comment and i certainly agree with her.There is no doubt about the fact that buying a house is not a joke and taking in to account the current trend in Canada,the situation is bit murky.

A recent finding is pointing out the fact that total household incomes on mortgages has come down heavily from 40.4% in 1990 to 27 % now.
All those who got an opportunity to buy a house in the late 80's will definitely agree with the fact that the house prices were almost 175% above normal when they clinched the deal whereas the increase is only about 86% for the past five years.

Canadian lending policies are totally different from the US and are more restrictive plus most low ratio mortgages are insured.Now the elections are round the corner in US and interest rate cuts in the early 2009 cannot be ruled out.This move can put some pressure on the Canadian banks and they might be forced to counter attack the rising dollar price.

The good news is that GST has been considerably reduced and for first time home buyers , Land Transfer Tax rebate program has now been extended to resale homes.Price appreciation is expected to remain at 3-4% in Ontario markets with lower sales to listing ratio is expected.

I like the idea of planning to buy as much as you can afford right now, and even a bit more considering that your income will go up over time.

www.moneybeat.com

Monty:

1)Right now about $5k in rsp's, but depending what information I find, I may not be looking to actually purchase until late in the year, or this time next year, which by then i should have $10k, maybe more.

2)Yes the income is alright. I have no other obligations for contracts except for a cell phone and gym payment (other then the rent I pay now)

3) other than the 5K in rsp's, no other savings.

TO is expensive, which is why I would most likley look out of town, such as Barrie, Ajax, Whitby.

Conventional wisdom is to buy the most you can afford and grow into the payments. Whether you buy into that wisdom is a personal decision.

If your income is stable and you can, by your calculations. easily afford the payments (the banks, imo, allow too much debt) by using no more than 1/4 to 1/3 of your pay, then I say go for it, but a realistic look at your budget will help you make that decision for your own personal circumstances.

Oh... and an adjustable rate mortgage where all you are paying is the interest until you can afford to refinance down the road does NOT qualify as "you can afford the payments". You'll get yourself into trouble with those ones more often than not.

FociPhil,

Fundamental Questions:
1) Do you have enough for a down payment for a $225K property?
2) Do you have enough to cover subsequent monthly payments and expenses?
3) Do you have enough saved up in case of emergencies?

That's one of the unfortunate parts of living in T.O... It's expensive.. I don't envy you at all.

I live in downtown Toronto right now, and work downtown as well. The only thing I might be able to afford downtown is a one bedroom condo for maybe 200-225K...but i wouldnt mind going outside the Greater Toronto Area for a townhouse or small detached, for about the same price.

As many people feel, i hate throwing away money on rent. I could wait and save, while throwing away money as well, or jump in now and pay a mortgage while not saving as much. At least thats the way I see it, but I'm not a pro...hence why i ask questions here.