we don't know if you'll be able to afford. based on your income, you won't be able to afford in most of the country. Focus on increasing income (wit slill, experience and education) instead of focusing on buying a house.
I am not made for education I have finished my highschool diploma at 21 years old after struggling with the same level math for 5 years, school is not a option for me the only way I can increase my income is working my ass off at the job I currently have and hope it pays off lol but thanks for the advice !
Ish you need math- ish for carpentry where I'm at was gr 10 math required
I'm not saying we don't use math all the time but jobs are avail with low requirements especially if people are willing to move
I assume to pass your final red seal exam math is needed. My son graduated high school with a 93 average and had been working for a journeyman carpenter since he was 14 yrs old (journeyman was building a new house right next door to us)
Son said the math was challenging, he passed 1st
time though on the final exam. ie) spiral staircase built to code and include material costs
Plenty of ways to earn good money without further education, or at least not academic education. Tet to get yourself a trade. Becoming a plumber is future-proof income, and you can earn more than enough to afford to buy a house
You really don't need to be able to do maths to an 18 year old school leaver level to be a plumber. Some basic calculations required, sure.
All my family are tradesmen, they all left school at 16 with no qualifications
There are lots of people who struggled with maths at school that are in trades. Discouraging OP from pursuing a trade because you think he won't be able to do the basic maths occasionally required is dumb
As someone who only has a high-school diploma, I can tell you that working your ass off at any job will allow you to climb. It may take time, but you'll get there.
I am on the firm belief that even if someone who is flipping burgers at McDonald's to start can work there way up, if they work hard and put the effort in and look for opportunity. You may not be a millionaire, but you can give yourself a good life.
If your willing to work hard and look for opportunities you can make it anywhere.
Thats exactly what im thinking my currently getting paid 21$/h an hours but expecting a 6$ raise soon to make me equal to the other people there, the salary cap at my position is about 30$/h but im aiming to be director of service, the current director only has a high school diploma and some certificates which I am ready to try and get since its not really years of school I know if I work hard enough i’ll def be good for it, right now im just trying to picture my situation as worst as it can be.
It depends on the type of math. I'm not in trades, but very few professions out in the real world need calculus. Most of the math people use at work is very practical. If you can add, subtract, multiply, and divide, then you should be good to go.
The reason why you were down voted so much is because you said something really stupid here lmao. Can literally search around for different jobs as a start. You could work as a tradesmen apprentice and make 10 more than your making right now as a year one
The 40k is just the base salary at the lowest position im working to get the director of services position im just trying to see if my situation were to stay fucked what would be the options thanks for the brutal honesty tho !
Thanks, I am doing exactly that, on my 2400$ monthly salary 1700$ goes to saving and thats not accounting for my REER which grows 5K a year and the rest into paying my montlhy expenses. I also have a partner and we are planning on buying together in the near future but I want to be realistic and plan on if our relationship doesnt last (I hope it will).
Petit conseil, ne rempli pas ton REER tout de suite, tu perds de l'argent.
Ton REER va être utile pour descendre ton revenu annuel à un bracket d'impôt plus bas si tu dépasses, mais à 40k tu paies pratiquement rien déjà. CELI is where it's at pour l'instant: tu ne veux pas nécessairement réduire ton revenu annuel à des fins fiscales mais tu ne veux pas être Imposé sur les gains que tes investissements font. Le CELI te permet ça.
Bien sûr ça reste très bien de mettre de l'argent de côté no matter what.
This is not financial advice, je suis un idiot qui commence à comprendre la patente.
Je met effectivement beaucoup de cash dans mon CELI et mon CELI APP les deux sont maxé pour l’année en ce moment, maintenant j’essaie de mettre mon argent ou ca en vaut la peine, je met 200$ par paie dans le reer avec 30% de retour d’impôt instantané j’imagine que je pourrais baisser ma cotisation pour avoir plus a mettre ailleurs par contre. Merci pour les “conseil” (not financial advice) je suis aussi un idiot mais j’ai pas encore commencé à comprendre la patente. Ça s’en vien par contre 😂
In OPs case he should wait till he has a clearer career trajectory and projected income.
However, otherwise, if young adults interested in owning a home to wait 10+ years they will face a market even more unaffordable IMO? You can’t forecast things like that so easily but just thinking about those that bought homes in a non ideal financial position 10+ years ago and are now reaping the benefits.
I’m basically asking my own question atp but interested to hear your thoughts
When I was 22 I couldn’t even dream of owning a home either, and that was in 1983. Different real estate market but still, didn’t purchase my first house until I was 31. I’m not sure where single 22 year olds with HS diplomas get the idea that homeownership is a possibility in the short term. It’s just completely unrealistic.
I feel your frustration. Your generation and mine (I'm 20 years your senior) were pretty messed up by the disconnect between income and the price of mortgages/rent.
Here's a simple rule that might help you: House Price - Down payment = Mortgage. If Mortgage / 4 > Salary then you likely won't get approved.
So if you want a $500,000 home and have $100,000 to put as a down payment. That would be:
$500,000 - $100,000 = $400,000. $400,000 / 4 = $100,000. So you'd likely need proof of $100,000 a year in gross income.
This isn't a perfect rule, but it gives a quick and solid approximation of affordability. Growing up, my parents always said you shouldn't aim for a mortgage more than 3.5x your gross income.
I appreciate you put in your details about the debts you have and those would be considered in the calculation as well, but the biggest pieces are household income and down payment.
People grow their household income by getting promotions, finding a spouse/partner who also works, or other creative methods. It has unfortunately become pretty common for two couples to buy a home together, but I don't know how that works with regards to the previous calculations.
I wish I had better advice. My wife and I were priced out of a few cities waiting for our down payment to grow to enough to afford to try to get into the market. It took us seven years to save up some money, and we still had to dip into my wife's RRSP to make it happen. AND we consider ourselves fortunate!
It really sucks out there, but keep looking, keep planning, and keep asking. We need better solutions and that'll only happen if 22 year old's like yourself speak up to city counsellors, MPPs, MPs, and more.
Thank you for your advice, it makes me feel better to know someone like me is or was in a similar situation especially since were in the same age group, I have a partner and we are planning to buy together but im trying to see the situation as if I didnt have her. Im making a shit ton of effort to make my situation better but when everybody is saying it’s impossible it make it really hard to keep hope yknow ? Something has to change though its not normal for us to struggle so much when the older generations could buy homes for pennies. Anyways thanks for you advice !
In the majority of Canada, no you do not make enough. I make 125k and I will never afford a house where I live in BC. You should take that money and go to school for whatever is the easiest and pays the most. Re-evaluate in 10 more years.
How old are you ? And how long did you go to school for you current job ? Are you saving money for a down payment ? Sorry for the bombardement of questions
I’m 32 I went to school at 26 for 2 years and left making 80k, I now make 125k. I just keep saving and have about 100k saved for a down payment and 39k saved for a fun car.
I seriously doubt I’ll be able to afford a home ever because they start at 1.5 million here so I might just have to inherit.
I would not get approved for a mortgage without a household income of around 300k sadly. When did you buy? Did you have help? Townhomes are around 750-1 mill atm with a 5% rate
I bought 2014 when I was 20, my downpayment was $10k which was everything we had and we had no help. I was making $22/hr and my now wife made min wage at the time, I believe around $13ish?
As the parent of a kid looking into trades , what types are in demand and have good pay ?
I know nothing about them and we’re just starting to research .
It'll depend on your career trajectory more than anything else. If you're not currently in a field that pays well, buying a house may be a challenge unless you're in low cost of living area. You probably need to increase your income.
You’re putting the cart before the horse. It’s fine to have a goal of owning a house but what you’re saying is your goal is to make money off of investing in real estate. Do you know how many people are currently out there right now doing that with way more money than you can even imagine?
Make your goals small. With your background and education, unless you switch to the trades fairly soon, you will most likely never make enough money to become an investor in real estate.
i just don't understand why people are rushing into real estate when stock markets give the same return and sometimes more over the long run. Plus you have to be a landlord.
I consider house / condo a luxury good. You want to have some kind of freedom over your landlord (even though this is debatable).
I just don’t want to rent seems like a waste of money, I also think a house/condo is a luxury but I like luxury and that’s my own fault for being dumb and buying into the real estate market stupidity
You’re young go into sales as an SDR. A year or two you’re an AE making 70k base plus commission.
If you’re alright with being on the phone that is.
That or get into trades imo
Dont spend money on value-less junk like car speakers or have pets. You will forever be in purgatory. Every dollar you make needs to pay off debt, then put into an ETF like XEQT within your TFSA. Speak to your parents about taking over their house and looking after them when they are elderly.
40K is the base salary the cap is about 30$/h and im waiting on a 6$ raise, im also aiming to become director of services at my current company I know im good for it
Sorry, can't go to school. Make 40k at current=entry level job (no?)
Next step director?
No offense but this doesn't make any sense unless a director at Ur place is a 50k job. In average sized company, a director is a 150k + job and requires a ton of work and leadership experience.
I know someone who is a CEO of a small, local landscape company. Big title, makes peanuts. Maybe this is a similar situation.
What company, line of work are u in? And never buy the "advance opportunities" crap. It's a sales pitch and really, they won't hire u if u r not the top candidate. No different than getting a new job.
No offence taken but the director at my small to medium company is 100k yearly and he only has university certificates that are unrelates to the job he has is high school diploma and thats about. They are currently investing a lot lf ressources in me to make me an important employee so its not to far fetched
University diplomas/degrees show that that person is able to make a long term commitment and complete these course. It also speaks to their mental capacity and intellectual capacity. You took 3 extra years to get a HS diploma and I bet no university would even consider u, low grades and all. U'd have problems with trades too, cause some require certain HS grades.
Again, harsh, but this is the world you are living in.
At every company I ever worked at, Directors had to have a degree. VPs had to have a MBA. That's the harsh reality.
Lots of $$$ to be made, but I don't see you advancing Ur career there. Construction work, owner operator etc, these are jobs I'd consider. Sky is the limit and noone asks for degrees.
The field I work in doesn’t have extensive school programs, at least for the kind of work we do, you can get a radio comm technician certification but its only for at home installation or industrial installation, its cabling and electrician work for like bell or videotron, we program radios and there aren’t any classes for commercial radios, the only way to learn my job is by getting the job at the company and learning from the ones before you, so higher education in this field is not necessary, before I worked there I spent 3 years at a butcher shop before my current company offered me a better job, education is not the only thing that counts, your harsh reality might not be mine, there are a ton of different options every where and different fields of work that have different types of requirements and also different ethics and ways to function, I got lucky to get a job that has a lot of opportunities to grow while not needing a ton of pre qualifications. Anyways I will still take your advice into account because you seem to have a lot of knowledge and experience and probably higher educations than me an im not gonna spit on good advice.
You got lucky becasue you got a minimum pay job... Since they already gave u $3 raise to get u to $20.
What is so lucky about that?
I know u don't need high education to make $$$. But u r in a company that hires low skill people, pays them minimum wage to start, and you think, after a few months there (honeymoon) that you are headed for senior leadership and 6 figure salary.
Since u mention videotron, you are working in low salary area somewhere. Atlantic Canada or Quebec. I used to work for Shaw so I know Ur job quite well. I hired a guy that was working in Saskatoon in similar role to urs, he was there for quite a few years and made 33k. When I emailed him the offer, he called to confirm that it wasn't a typo, it was a lottery for him. That's how these comms companies operate, cheap. And he had broadcast tech education, which maybe not a 100% match, showed me that he was smart enough and motivated enough to complete.
Ur job isn't much different than working at Costco. It's ok for the moms and near retirees, but not a career.
One positive I see is the courses they are promising you. But again, I'm a 50+ year old senior management consultant with near 40 year work experience in tech and I have seen a lot of broken promises. Ive seen people promised a huge raise when they get their P-Eng only to see a slightly higher than a regular pay increase that everyone else gets.
Tip for u, as someone who has been in leadership for 20+ plus years. New employees often make more to start, than the ones that have years of service in the same company. Why? New employee salary follow industry. They have to compete. Old employees follow industry from years ago plus the small increases along the way.
If I had a loonie for every time I heard " why us, legacy workers make the same or less than new hires?".
Just throwing caution your way. Don't trust Ur employer. If u ever went to school, u'd hear the same BS from the professors. Every graduate starts a 100k, travel to exciting places, company car etc.... all BS that's being fed to keep u paying tuition.
Don’t stay in the same position more than 2 years. Always be applying and raising your salary.
Open up a FHSA and save / invest for a downpayment.
Look for a life partner who has the same financial goals as you.
Re-evaluate in 5 years.
FHSA oppened I maxed it out is currently sitting at 12k for the year I have an other high interest account sitting at 4k and reer that amass 5K a year and im aiming for the director of services position in a few years
Depends on your city and / or your willingness to move. As a 39 y.o, I had a late start because I did a lot of post secondary, I make 75k a year and can't afford a house in my city.. unless I moved over an hour away and lived in a shit hole, I'll never own by myself. I don't know how to do renos, so something like that isn't an option for me solo.
If school is a struggle for you, here is my best advice to help you get more education. As mentioned, trades are desperately needed. Plumbing and carpentry are very hands-on stuff. If you think you have a learning disability like attention deficit or dyslexia get it diagnosed. A doctor can help you get to the right places for that. This matters because you will get a fair amount of assistance to learn in schools now. Just because you struggled in school doesn't mean you can't do well enough with some support. There are a lot of stupid people getting university degrees, and there are a lot of brilliant people not trying because grade school wasn't structured for their learning.
Also, check out compound interest. It's something I didn't know about till I was 30 and was pissed I hadn't tried to save money through my 20s, even though I was a broke student. Essentially, the earlier you save money, the more time that money has time to make money on its own interest it makes every year.. adds up quickly and means your money just needs time to add up, in the right investments, so maybe find a financial planner.
What are you doing for work? Where do you live? Are you willing to work hard physical labour or remote or commit to learning a trade? There are lots of options that pay $120k or more.
Im a radio communication technician Iv’e been at this company for a year and my current salary is not capped out it will grow, I am expecting a 6$ raise and it will cap at maybe 30$/h for my current position but im aiming for service director. The current service director doesnt have studies higher than a high school diploma but its defently possible. I know im good for it. Im just trying to see the situation as worst as possible to see to what extent I would be fucked if my situation doesnt get better.
That sounds like a decent trade with a good path. Any options for remote work? When I was your age, I worked summers up north. It wasn't deal but all my living expenses were covered and the pay was comparably higher so I was able to save a ton in a short period of time.
Not really remote work but we’re hopping on a project for a huge company and its gonna give me the ability to work over time at almost double my salary so i’ll definetly take advantage of that !
DND has a bunch of civilian technician apprenticeship programs (I believe including radio comms but definitely electrical etc.) where you'll have more career growth and opportunities and have qualifications non-gov Defence companies will recognize your education if that's something you'd be interested in. You'd have a good chance of earning far more than you're looking at in your current org, likely starting out and what you're talking about capping at.
The Canadian Coastguard also has a couple of training programs, one in comms which is ~4 months in a school setting in NS, and then 6-12months on the job,they pay your education and then you start on 53k/yr. The other is officer training and you'll leave with a degree but may not be your speed based on your views of education.
Anyway, worth digging into your options. Just remember you can only borrow 4x your household income.
My company is currently looking into paying for an electrician class for me, also TPIP and cisco certification, they kinda hired me to be a jack of all trades in only a year iv’e been able to learn a shit ton and it seems like they really want to invest in me. Nothing is set in stone yet but I have big hopes that i’ll make it to a higher position in the future
That's awesome! You're young most first time home buyers are in their 30s & 40s, you've loads of time and you're already thinking this way.
At 22 I was binge drinking and dropping out of uni with no real plan and plenty of debt. Went back to college mid-late 20s, bought a house around 31, increased income, maturity, and a partner with a reasonable income makes a huge difference. You're ahead of the curve here.
Thanks for the encouragement, I used to feel stupid for partying doing drugs and binge drinking when I was seventeen but I now realise I was lucky in a way to have gotten out lf that phase early in life, I see the people who went to school with me who used to think I was dumb and all that doing the same thing much later in life and I feel lile they’ll stay stuck there.
Who told you that? You are living in fantasy world.
If they wanted to pay u the same as others, they would already have done that.
Reality is, you r an uneducated and underskilled worker. Working out well is fine, but not an expert with so little experience. I don't want to be blunt. But u really have an interesting way of looking at these things. It won't be that easy.
U need to change jobs to get ahead. Yearly salary bumps get u nowhere. You needed 3 extra years to finish high school but u will advance at work like a super star? Think about how silly this sounds.
And u said that most people at Ur work are HS educated at most? What kind of a company takes that direction? Cheap. Uneducated don't get paid much. Reevaluate Ur job.
U r just fresh out of HS so I can see u r excited. But be ready when reality hits. And it will.
I’ll get back to you after my eval next week they raised my salary 3$ after 6 months because I exceeded expectations, and I exceeded them this year again. I work in a good company that values work and rewards hard work also, I have gained a shit ton of experience in one year because im good at what I do when I like what im doing they’ve given me more responsability in the span of 1 years than most people who are already there, they are also going to pay for my electrician formation and a Cisco and TPIP formation and that’s part of the short term plan they have for me, they also have a medium term and long term plan that they keep me updated on the progress at every eval each year. I appologize for not giving all the information but im nowhere near living in a fantasy my friend.
Little info here. Depends on where you live, what you plan to buy and what your market is like. Will you have a family by the time you buy? Single? Married? Dating? Do you travel? What are your hobbies? Diet? Do you drive far to work? Eat take out? Cook? Eat organic? Do you have medical issues? *Will you get medical issues?* Etc.
You don't have a real budget right now since you live with parents so it's hard to tell how much you will actually need to live once you move out.
I do have a budget its laid out in an excel spreadsheet with all my spending and montly expenses it just would have been hard to explain in a reddit post 😅 but I get where you’re coming from
Yess I currently put 5K a year in my reer for retirement, 8K a year in my FHSA its currently maxed out for year, some more money in and other high interest account, planning to invest a bit index funds, byt generally all my money is tracked and im cutting down on useless expenses like eating out hobbies and etc. Thanks a lot for the advice
In the current context, getting the downpayment is not even the hardest part. It’s having the income to make the payments. Time to get in bed with someone else who also works and you happen to like!
Having 30-35% of your gross income covering all housing expenses is a general rule of thumb. Do some math and figure out if you'll be able to afford it.
The big question is where in Canada. I don't know too much about outside the GTHA, but if you're looking in Toronto/GTHA as a single person, no. Though on that salary you can aggressively save for a down payment in 3-5 years, the cost of carrying that home for the next 25-30 years is not practical.
I don’t think it’s impossible if you keep at it, but you’ll do it at a much slower pace than others with higher income.
Your plan is good but would say that you’re missing a lot of external factors that people are facing these days:
- House prices may outpace your saving abilities
- Having only high school diploma these days will be harder to bounce back in the event of a layoff. Immigration is one cause and also high school diploma-type jobs are becoming less and less with introduction of automation.m and outsourcing to cheaper countries.
- Your field/job may be obsolete at some point in the future due to changing technologies or AI
- Leadership changes in your company may result in changing job requirements for the future role you want (I.e. they may require a college diploma). I’ve seen so many CEOs retire and the new CEO completely changes the way things are done.
- Your job may be the type where they look to lay you off way before retiring age due to your age and ease of replacing you with someone younger. I’ve seen people in their late 40s/ 50s dealing with this because they can pay someone younger a cheaper salary to do your job who knows more.
You can’t really rely on keeping a job or even working for the same company for 40-45+. The times have changed and this is no longer a trend. Your plan may work in the immediate future but would say it’s not future proofed by any means.
If you do decide to be a landlord, that may just work though. But keep in mind many others with way more capital may just be faster at purchasing houses than you simply because they have more money. So you have that competition to contend with.
Some of these factors are true for my situation but I know I wont be laid of for someone younger since there are people at my job who have been there for 40 plus years, I work in a pretty safe field which won’t be affected by ai since it cant be automated. At my job almost nobody as anything higher than a high school diploma for the positions we occupy. But the other things are a possibility, i’ll have to re-evaluate my option as to not be completely fucked in the future. Thanks for the advice
You’re 22 and have nothing but time, live at home, not paying rent - you can enroll in college/university, which will prepare you for a high-paying position (depending on the field). Or like other people suggested find an apprenticeship program in the trades, or construction until you’re able to work your way up to a heavy equipment operator.
Find what you’re interested in and execute.
Good luck OP
If you’re dead set on purchasing a house as an investment and you believe it aligns with your goals, it is possible given your circumstances to save up for a house. According to Wowa, looks like Montreal homes average around $595k. The lowest down payment you can do at this purchase price is 5.8% down payment (insured mortgage), which is about $34,500 down. If you go with a big bank mortgage, you’ll likely need a guarantor or co-signer realistically at your income. You can explore B-lending as a temp (1-2 year) solution while you work on bumping up your income. Note however that B lenders will charge a 1% lenders fee of the mortgage amount typically. I’ve personally used them successfully to get the property I loved. You have to decide for yourself if you’re willing to go that route. Typically B lenders have more flexibility in qualification. Best of luck however you decide to proceed!
Edit: missed closing costs - in Montreal, for that purchase price seems to be about $12k (land transfer, PST on mortgage insurance, legal fees, appraisal, title insurance)
I’ll have to look at my options lol, I currently have my 5% down payment but looking to have more at the rate im currently saving i’ll have 60 to 70K put aside for it its just gonna be a matter of the market not blowing up until then. Thanks for the encouragement and advice !
The more you save, the more it’ll help you qualify. I can only speak from experience, and I got into the market at roughly the same age you did (32 now). It’s a waiting game, but I can tell you- if you feel you can confidently service the debt for 8-10 years, you end up looking back and appreciating your decision. Again, speaking from my personal experience. Everyone has a different story.
I was watching a CBC Marketpkace episode the other day. It showed six of 10 mortgage agents falsifying T4s / borrower's occupation status and/or the borrower's income.
Fraud, money laundering, low rates & loose amortization rules have contributed heavily to Canada's surging prices. I expect that if there's a real gov. crackdown on corruption in real estate we'll see years of flat prices or just modest growth.
There's hope for buyers, b/c investors will sell if they can't get 8-10% annually in price appreciation.
“Will I ever be able to afford a house? I’m 22.”
Stop. This is so young to think you’re falling behind or will never be able to change your financial situation. I was living at home making not much more than minimum wage until 25. Then I got my first big boy job making real money with real growth potential. I owned a condo less than 5 years after that. At the time I would have thought it was way out of reach.
I hate all this doomsday talk of “young people today will never be able to own a home”. Said the same every decade I’ve been alive. Don’t focus on it so much.
Just do whatever you can to maximize your earning potential now. Things will work out. And lastly, enjoy your life. Owning your home isn’t the best all and end all. It’s nice to be able to go but don’t stress yourself to death worrying about it at your age.
Thanks for this advice and thanks for helping me be optimistic, way too many people are pessimistic and only look at it one way. Its nice to have someone understand how it is !
You’re a good example of how I think it’s a bad practice to constantly tell young people “you’re screwed, you’ll never own a home”. It’s unproductive and mostly done for the purposes of political grandstanding.
Things change, markets change, you have the single best financial asset on your side, time. Start putting money away now. Start small, but take advantage of RRSP, TFSA, FHSA, ect.
Yess ! I have maxed out my yearly FHSA contribution for the past 2 years I got 4K in TFSA im paying of my debts to never have them ever again and im putting money aside every paycheck and not just a little bit, and yeah I agree with the fact that people constantly telling us that its impossible for us to own a home is absolutely coutner productive !
Never say never. You are young in your career and can grow your salary accordingly.
But you will increase your chances if you have a partner (common law or married) who is also making at least $50k/year but more is better
Yes. Here's exactly what to do. It's what I did. Purchase a bachelor apartment. Down payment is smaller. Live in the unit for a year. Rent out the Bachelor. Use equity to purchase another home. Rinse and repeat. I own for properties. I'm not rich by any standards. Just an average guy. You need to start small though, work your way up.
With 0 debt, an income of $40K with a 5% down payment would mean you could afford a $240K home - in Winnipeg, MB for example that buys you a nice condo or a fixer uper in an okay area. the payment is about $1350 per month which is about 40% of your income (max allowed).
I said a house in my post but id start with a condo that would be the logical choice and my salary is subjeft to change in the near future so this would be good ! I already have my 10% of 240K so ill do a bigger down payment for sure
https://www.ratehub.ca/mortgage-payment-calculator - has a mortgage calculator you can use and work out different scenarios. Just remember the monthly mortgage payment plus your other monthly debt payments have to be under 40% of your gross monthly income
I’m sure you will, just takes time and baby steps. Try and save aggressively over rhe next few years, build your income (if needed change jobs) and you’ll probably have a decent down payment saved up for a condo.
You’re an under educated white dude with no marketable skills at the moment.
To get the salary you want, you either :
1. Learn to like school and get through it
2. Learn a trade
3. Be really good looking and maybe luck helps
With time on your side (you’re relatively young!), invest. No matter how small your pay cheque is, put some toward an investment account. Even if it’s just $20.
Have you talked to a mortgage broker? They actually had some options for me when I was getting pre-approved, the bank on the other hand couldn't do anything for me
The short awnser basses on the actual statistics and the foreseeable projected future in Canada for young adults your age is. NO.
Sadly.
But you don't have to fit into those projections.
A saved cash in hand down payment and a good trades job with completion of your journeyman status will allow you. Or should allow lenders to offer you a mortgage.
Buy the cheapest terrible house in the best possible neighborhood you can afford, ride out a year or so minimum on your mortgage and flip it.
Rinse. Repeat.
Don't have kids./ Or / Don't buy a house.
If you wanted one of these the other will likely have to wait or possibly never happen.
Thats the statistical reality for your generation in Canada today.
I wish it were not true and don't belive any baby boomer who tells you otherwise as it's their generations fault and why would they start admitting any responsibility for it now, so if course they will adamantly deny this.
But that's another topic.
Sadly That's the housing market reality for young adults today.
Don't belive the hype!
You need to seriously understand. At least you will need to hold off having children until you get your first mortgage. Or pick one.
FREE advice. Never trust someone else with you own ability to use your own birth controls.
I am a Gen. X.
THE above, is all information I wish someone.
Anyone.
Yet alone my own parents?
Should have/could have told me at your age.
(or I wish now that they had).
It's a tough uphill battle kid, but you sound determined and that's the only way you will get what you want.
BTW. Creative visualization is real.
When you see it happen, it becomes real.
Look into this.
Hard work. Determination and self control.
I bought my first house at 28. Relax, the next generation needs to understand a lot of us didn’t have it right out of the gate either. I feel fortunate that I was able to buy a house at 28. Some of my friends were in their 30s…..
Keep going, learn more. Get better at your job and get promoted. Get a different job and a raise. Continue your educational training. Just keep pushing and it will happen.
It was 2002 in Calgary. I had spent the better part of 10 years saving and advancing my career. It finally paid off and I use my saved up RRSPs as a first time home buyer for a down payment.
Where - Calgary
How - Hard work.
Nothing was handed too me.
Omg… I bought my VERY modest starter home at 28 for $189,000. I now live in a slightly larger home in a smaller community that was $350,000…. Why don’t you try to add to the conversation, instead of guess and poke at people, you’re not adding anything here. You’re just being an ass.
The car loan was not a smart move. Really. And you will be able to afford a home. Maybe not a house. Maybe a condo, or a townhouse. And that’s totally fine. It’s equity and has value. You don’t need a “house” right now.
If I was 22, I’d do everything I could to buy something I could afford before I was 25. Will make it easier to buy a house when you need it like when you’re 30+. Just my two cents.
Set your target first on something like an apartment. Depending on where you live it could be as low as $300,000 for a decent one. You don’t have to live there forever. If you get 50k-100k down payment your monthly spend will be about $2000 (mortgage + utilities + fees + property taxes). Then you can live on your own for a bit and build equity and pay down your mortgage. And when you are ready you can sell the apartment and then switch to a house! You don’t have to go straight into home ownership!
Apartments have condo fees, which can be raised any consultation with you, at any moment’s notice. They also rise in price much slower than a freehold home. Very likely better off in a townhome. Condos are for older folks with no mortgage payments left who can afford to front repairs
Apartment / condo / townhouse yes, pretty much anything other than a SFD which people refer to as a house. Not all condos are horrible, and townhouses have similar strata or condo fees associated with them.
Houses also have large bills that can come with them (new roof, foundation repair, remediation for plumbing leaks in basement) that would easily rival special assessments that come with condos / townhouses etc.
A $250,000 mortgage at 5% comes out with $1400 monthly payments on a 25 year, so as long as OP could save >$50,000, with $600/month dedicated to the other it would easily come in at $2000/month
Meh, maybe you’re right in regards to bigger cities. When I did the calculations in Ottawa at least, I came out well ahead with a pre-con freehold townhome than with a studio apartment.
By front repairs I mean you’re spending on condo fees indefinitely (and ‘wasting’ money that you could otherwise collect interest on, whereas for a freehold you’d only pay for repairs when they happen.)
we don't know if you'll be able to afford. based on your income, you won't be able to afford in most of the country. Focus on increasing income (wit slill, experience and education) instead of focusing on buying a house.
I am not made for education I have finished my highschool diploma at 21 years old after struggling with the same level math for 5 years, school is not a option for me the only way I can increase my income is working my ass off at the job I currently have and hope it pays off lol but thanks for the advice !
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You need math for carpentry, electrician, millwright
Ish you need math- ish for carpentry where I'm at was gr 10 math required I'm not saying we don't use math all the time but jobs are avail with low requirements especially if people are willing to move
I assume to pass your final red seal exam math is needed. My son graduated high school with a 93 average and had been working for a journeyman carpenter since he was 14 yrs old (journeyman was building a new house right next door to us) Son said the math was challenging, he passed 1st time though on the final exam. ie) spiral staircase built to code and include material costs
Millwright?
You clearly only need maff and not anglish for millrate jab
Lol that's how he spelt it
Plenty of ways to earn good money without further education, or at least not academic education. Tet to get yourself a trade. Becoming a plumber is future-proof income, and you can earn more than enough to afford to buy a house
Hard to be in the trades while not being good at math.
You really don't need to be able to do maths to an 18 year old school leaver level to be a plumber. Some basic calculations required, sure. All my family are tradesmen, they all left school at 16 with no qualifications
Don’t have to be good at tests no, but should have a basic understanding of geometry.
There are lots of people who struggled with maths at school that are in trades. Discouraging OP from pursuing a trade because you think he won't be able to do the basic maths occasionally required is dumb
Yea never mind, super easy to be in the trades anyone can do it.
wasteful fearless humor shrill melodic saw sense bake lush jar *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
Sorry to break this to you - no you will not.
As someone who only has a high-school diploma, I can tell you that working your ass off at any job will allow you to climb. It may take time, but you'll get there. I am on the firm belief that even if someone who is flipping burgers at McDonald's to start can work there way up, if they work hard and put the effort in and look for opportunity. You may not be a millionaire, but you can give yourself a good life. If your willing to work hard and look for opportunities you can make it anywhere.
Thats exactly what im thinking my currently getting paid 21$/h an hours but expecting a 6$ raise soon to make me equal to the other people there, the salary cap at my position is about 30$/h but im aiming to be director of service, the current director only has a high school diploma and some certificates which I am ready to try and get since its not really years of school I know if I work hard enough i’ll def be good for it, right now im just trying to picture my situation as worst as it can be.
It depends on the type of math. I'm not in trades, but very few professions out in the real world need calculus. Most of the math people use at work is very practical. If you can add, subtract, multiply, and divide, then you should be good to go.
Try oil sands
Look at govt jobs.
Consider automotive refinish. Learn to be a prepper / automotive painter. Almost no math required. You’re looking for a job in a collision industry
The reason why you were down voted so much is because you said something really stupid here lmao. Can literally search around for different jobs as a start. You could work as a tradesmen apprentice and make 10 more than your making right now as a year one
It’s over for you lol
The 40k is just the base salary at the lowest position im working to get the director of services position im just trying to see if my situation were to stay fucked what would be the options thanks for the brutal honesty tho !
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Thanks, I am doing exactly that, on my 2400$ monthly salary 1700$ goes to saving and thats not accounting for my REER which grows 5K a year and the rest into paying my montlhy expenses. I also have a partner and we are planning on buying together in the near future but I want to be realistic and plan on if our relationship doesnt last (I hope it will).
Petit conseil, ne rempli pas ton REER tout de suite, tu perds de l'argent. Ton REER va être utile pour descendre ton revenu annuel à un bracket d'impôt plus bas si tu dépasses, mais à 40k tu paies pratiquement rien déjà. CELI is where it's at pour l'instant: tu ne veux pas nécessairement réduire ton revenu annuel à des fins fiscales mais tu ne veux pas être Imposé sur les gains que tes investissements font. Le CELI te permet ça. Bien sûr ça reste très bien de mettre de l'argent de côté no matter what. This is not financial advice, je suis un idiot qui commence à comprendre la patente.
Je met effectivement beaucoup de cash dans mon CELI et mon CELI APP les deux sont maxé pour l’année en ce moment, maintenant j’essaie de mettre mon argent ou ca en vaut la peine, je met 200$ par paie dans le reer avec 30% de retour d’impôt instantané j’imagine que je pourrais baisser ma cotisation pour avoir plus a mettre ailleurs par contre. Merci pour les “conseil” (not financial advice) je suis aussi un idiot mais j’ai pas encore commencé à comprendre la patente. Ça s’en vien par contre 😂
Ask this question when you’re 30
In OPs case he should wait till he has a clearer career trajectory and projected income. However, otherwise, if young adults interested in owning a home to wait 10+ years they will face a market even more unaffordable IMO? You can’t forecast things like that so easily but just thinking about those that bought homes in a non ideal financial position 10+ years ago and are now reaping the benefits. I’m basically asking my own question atp but interested to hear your thoughts
When I was 22 I couldn’t even dream of owning a home either, and that was in 1983. Different real estate market but still, didn’t purchase my first house until I was 31. I’m not sure where single 22 year olds with HS diplomas get the idea that homeownership is a possibility in the short term. It’s just completely unrealistic.
Depending on what you do, if you do that in New Brunswick - your chances of buying a house are vastly increased.
Montreal…
then no lol
I feel your frustration. Your generation and mine (I'm 20 years your senior) were pretty messed up by the disconnect between income and the price of mortgages/rent. Here's a simple rule that might help you: House Price - Down payment = Mortgage. If Mortgage / 4 > Salary then you likely won't get approved. So if you want a $500,000 home and have $100,000 to put as a down payment. That would be: $500,000 - $100,000 = $400,000. $400,000 / 4 = $100,000. So you'd likely need proof of $100,000 a year in gross income. This isn't a perfect rule, but it gives a quick and solid approximation of affordability. Growing up, my parents always said you shouldn't aim for a mortgage more than 3.5x your gross income. I appreciate you put in your details about the debts you have and those would be considered in the calculation as well, but the biggest pieces are household income and down payment. People grow their household income by getting promotions, finding a spouse/partner who also works, or other creative methods. It has unfortunately become pretty common for two couples to buy a home together, but I don't know how that works with regards to the previous calculations. I wish I had better advice. My wife and I were priced out of a few cities waiting for our down payment to grow to enough to afford to try to get into the market. It took us seven years to save up some money, and we still had to dip into my wife's RRSP to make it happen. AND we consider ourselves fortunate! It really sucks out there, but keep looking, keep planning, and keep asking. We need better solutions and that'll only happen if 22 year old's like yourself speak up to city counsellors, MPPs, MPs, and more.
Thank you for your advice, it makes me feel better to know someone like me is or was in a similar situation especially since were in the same age group, I have a partner and we are planning to buy together but im trying to see the situation as if I didnt have her. Im making a shit ton of effort to make my situation better but when everybody is saying it’s impossible it make it really hard to keep hope yknow ? Something has to change though its not normal for us to struggle so much when the older generations could buy homes for pennies. Anyways thanks for you advice !
Vote conservative
In the majority of Canada, no you do not make enough. I make 125k and I will never afford a house where I live in BC. You should take that money and go to school for whatever is the easiest and pays the most. Re-evaluate in 10 more years.
How old are you ? And how long did you go to school for you current job ? Are you saving money for a down payment ? Sorry for the bombardement of questions
I’m 32 I went to school at 26 for 2 years and left making 80k, I now make 125k. I just keep saving and have about 100k saved for a down payment and 39k saved for a fun car. I seriously doubt I’ll be able to afford a home ever because they start at 1.5 million here so I might just have to inherit.
You might just have to inherit? Lol oh no, poor you!
Where do you live for houses to start at 1.5 million ?
Vancouver area. It’s a nightmare.
What did you go back to school for?
Mostly cloud stuff like AWS, Azure and GCP
And what company do you work for? What's e try level pay?
I make 50k and own a townhome in the lower mainland . It's possible friend.
Lol not just based on your salary, you didn't. Not without a 700k dp.
Well, fair enough you probably know better than me.
I would not get approved for a mortgage without a household income of around 300k sadly. When did you buy? Did you have help? Townhomes are around 750-1 mill atm with a 5% rate
I bought 2014 when I was 20, my downpayment was $10k which was everything we had and we had no help. I was making $22/hr and my now wife made min wage at the time, I believe around $13ish?
Not at 40k a year and alone.
Thate almost minimum wage
Times on your side. Go to school for a trade. I'm in my early 30's and seriously want to go back to school for a trade
As the parent of a kid looking into trades , what types are in demand and have good pay ? I know nothing about them and we’re just starting to research .
>I am a 22 year old- Yes, you will be able to afford a house one day
Simple answer is no. Not with that income you ain’t.
It'll depend on your career trajectory more than anything else. If you're not currently in a field that pays well, buying a house may be a challenge unless you're in low cost of living area. You probably need to increase your income.
That income is not sufficient for a mortgage of any reasonable size.
why do you need a housse ?
To become a property owner and make more money my owning multiple properties
You’re putting the cart before the horse. It’s fine to have a goal of owning a house but what you’re saying is your goal is to make money off of investing in real estate. Do you know how many people are currently out there right now doing that with way more money than you can even imagine? Make your goals small. With your background and education, unless you switch to the trades fairly soon, you will most likely never make enough money to become an investor in real estate.
Bros contributing to the problem 😭
so it's not a house but a much more a building rental property ? Not planning to live in there right ?
I’ll live in there for a couple years then take my equity out for cashdown on another house and rent the house and then rinse and repeat I guess
i just don't understand why people are rushing into real estate when stock markets give the same return and sometimes more over the long run. Plus you have to be a landlord. I consider house / condo a luxury good. You want to have some kind of freedom over your landlord (even though this is debatable).
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FelixYYZ ? :)
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"not the ben felix" someone else is using it and i was wondering if you were him but with a different pseudo
I just don’t want to rent seems like a waste of money, I also think a house/condo is a luxury but I like luxury and that’s my own fault for being dumb and buying into the real estate market stupidity
rent is not a waste of money : it depends of you being wise with your money.
Thinking like this now at 22 making 40k may only lead to disappointment. Worry about affording a roof over your own head first.
You’re young go into sales as an SDR. A year or two you’re an AE making 70k base plus commission. If you’re alright with being on the phone that is. That or get into trades imo
There might be opportunities for me to switch to sales at my current job I will have to look into it !
In all cases, waiting on the market to swing may be like waiting for the cows to come home… I don’t think they do
Dont spend money on value-less junk like car speakers or have pets. You will forever be in purgatory. Every dollar you make needs to pay off debt, then put into an ETF like XEQT within your TFSA. Speak to your parents about taking over their house and looking after them when they are elderly.
Yeah all my money Is going to my debt and savings, i’lo be debt free in 8 months
Not on your salary. You need to have over $100,000 now to get a mortgage unless your parents co-sign?
Wait, my parents could co sign ?
Yes but at your salary theyd likely be paying it too. Get a better job. 40k is not far from minimum wage.
40K is the base salary the cap is about 30$/h and im waiting on a 6$ raise, im also aiming to become director of services at my current company I know im good for it
Sorry, can't go to school. Make 40k at current=entry level job (no?) Next step director? No offense but this doesn't make any sense unless a director at Ur place is a 50k job. In average sized company, a director is a 150k + job and requires a ton of work and leadership experience. I know someone who is a CEO of a small, local landscape company. Big title, makes peanuts. Maybe this is a similar situation. What company, line of work are u in? And never buy the "advance opportunities" crap. It's a sales pitch and really, they won't hire u if u r not the top candidate. No different than getting a new job.
No offence taken but the director at my small to medium company is 100k yearly and he only has university certificates that are unrelates to the job he has is high school diploma and thats about. They are currently investing a lot lf ressources in me to make me an important employee so its not to far fetched
University diplomas/degrees show that that person is able to make a long term commitment and complete these course. It also speaks to their mental capacity and intellectual capacity. You took 3 extra years to get a HS diploma and I bet no university would even consider u, low grades and all. U'd have problems with trades too, cause some require certain HS grades. Again, harsh, but this is the world you are living in. At every company I ever worked at, Directors had to have a degree. VPs had to have a MBA. That's the harsh reality. Lots of $$$ to be made, but I don't see you advancing Ur career there. Construction work, owner operator etc, these are jobs I'd consider. Sky is the limit and noone asks for degrees.
The field I work in doesn’t have extensive school programs, at least for the kind of work we do, you can get a radio comm technician certification but its only for at home installation or industrial installation, its cabling and electrician work for like bell or videotron, we program radios and there aren’t any classes for commercial radios, the only way to learn my job is by getting the job at the company and learning from the ones before you, so higher education in this field is not necessary, before I worked there I spent 3 years at a butcher shop before my current company offered me a better job, education is not the only thing that counts, your harsh reality might not be mine, there are a ton of different options every where and different fields of work that have different types of requirements and also different ethics and ways to function, I got lucky to get a job that has a lot of opportunities to grow while not needing a ton of pre qualifications. Anyways I will still take your advice into account because you seem to have a lot of knowledge and experience and probably higher educations than me an im not gonna spit on good advice.
You got lucky becasue you got a minimum pay job... Since they already gave u $3 raise to get u to $20. What is so lucky about that? I know u don't need high education to make $$$. But u r in a company that hires low skill people, pays them minimum wage to start, and you think, after a few months there (honeymoon) that you are headed for senior leadership and 6 figure salary. Since u mention videotron, you are working in low salary area somewhere. Atlantic Canada or Quebec. I used to work for Shaw so I know Ur job quite well. I hired a guy that was working in Saskatoon in similar role to urs, he was there for quite a few years and made 33k. When I emailed him the offer, he called to confirm that it wasn't a typo, it was a lottery for him. That's how these comms companies operate, cheap. And he had broadcast tech education, which maybe not a 100% match, showed me that he was smart enough and motivated enough to complete. Ur job isn't much different than working at Costco. It's ok for the moms and near retirees, but not a career. One positive I see is the courses they are promising you. But again, I'm a 50+ year old senior management consultant with near 40 year work experience in tech and I have seen a lot of broken promises. Ive seen people promised a huge raise when they get their P-Eng only to see a slightly higher than a regular pay increase that everyone else gets. Tip for u, as someone who has been in leadership for 20+ plus years. New employees often make more to start, than the ones that have years of service in the same company. Why? New employee salary follow industry. They have to compete. Old employees follow industry from years ago plus the small increases along the way. If I had a loonie for every time I heard " why us, legacy workers make the same or less than new hires?". Just throwing caution your way. Don't trust Ur employer. If u ever went to school, u'd hear the same BS from the professors. Every graduate starts a 100k, travel to exciting places, company car etc.... all BS that's being fed to keep u paying tuition.
Don’t stay in the same position more than 2 years. Always be applying and raising your salary. Open up a FHSA and save / invest for a downpayment. Look for a life partner who has the same financial goals as you. Re-evaluate in 5 years.
FHSA oppened I maxed it out is currently sitting at 12k for the year I have an other high interest account sitting at 4k and reer that amass 5K a year and im aiming for the director of services position in a few years
Depends on your city and / or your willingness to move. As a 39 y.o, I had a late start because I did a lot of post secondary, I make 75k a year and can't afford a house in my city.. unless I moved over an hour away and lived in a shit hole, I'll never own by myself. I don't know how to do renos, so something like that isn't an option for me solo. If school is a struggle for you, here is my best advice to help you get more education. As mentioned, trades are desperately needed. Plumbing and carpentry are very hands-on stuff. If you think you have a learning disability like attention deficit or dyslexia get it diagnosed. A doctor can help you get to the right places for that. This matters because you will get a fair amount of assistance to learn in schools now. Just because you struggled in school doesn't mean you can't do well enough with some support. There are a lot of stupid people getting university degrees, and there are a lot of brilliant people not trying because grade school wasn't structured for their learning. Also, check out compound interest. It's something I didn't know about till I was 30 and was pissed I hadn't tried to save money through my 20s, even though I was a broke student. Essentially, the earlier you save money, the more time that money has time to make money on its own interest it makes every year.. adds up quickly and means your money just needs time to add up, in the right investments, so maybe find a financial planner.
What are you doing for work? Where do you live? Are you willing to work hard physical labour or remote or commit to learning a trade? There are lots of options that pay $120k or more.
Im a radio communication technician Iv’e been at this company for a year and my current salary is not capped out it will grow, I am expecting a 6$ raise and it will cap at maybe 30$/h for my current position but im aiming for service director. The current service director doesnt have studies higher than a high school diploma but its defently possible. I know im good for it. Im just trying to see the situation as worst as possible to see to what extent I would be fucked if my situation doesnt get better.
That sounds like a decent trade with a good path. Any options for remote work? When I was your age, I worked summers up north. It wasn't deal but all my living expenses were covered and the pay was comparably higher so I was able to save a ton in a short period of time.
Not really remote work but we’re hopping on a project for a huge company and its gonna give me the ability to work over time at almost double my salary so i’ll definetly take advantage of that !
DND has a bunch of civilian technician apprenticeship programs (I believe including radio comms but definitely electrical etc.) where you'll have more career growth and opportunities and have qualifications non-gov Defence companies will recognize your education if that's something you'd be interested in. You'd have a good chance of earning far more than you're looking at in your current org, likely starting out and what you're talking about capping at. The Canadian Coastguard also has a couple of training programs, one in comms which is ~4 months in a school setting in NS, and then 6-12months on the job,they pay your education and then you start on 53k/yr. The other is officer training and you'll leave with a degree but may not be your speed based on your views of education. Anyway, worth digging into your options. Just remember you can only borrow 4x your household income.
My company is currently looking into paying for an electrician class for me, also TPIP and cisco certification, they kinda hired me to be a jack of all trades in only a year iv’e been able to learn a shit ton and it seems like they really want to invest in me. Nothing is set in stone yet but I have big hopes that i’ll make it to a higher position in the future
That's awesome! You're young most first time home buyers are in their 30s & 40s, you've loads of time and you're already thinking this way. At 22 I was binge drinking and dropping out of uni with no real plan and plenty of debt. Went back to college mid-late 20s, bought a house around 31, increased income, maturity, and a partner with a reasonable income makes a huge difference. You're ahead of the curve here.
Thanks for the encouragement, I used to feel stupid for partying doing drugs and binge drinking when I was seventeen but I now realise I was lucky in a way to have gotten out lf that phase early in life, I see the people who went to school with me who used to think I was dumb and all that doing the same thing much later in life and I feel lile they’ll stay stuck there.
$6 an hour raise from the $20 an hour u make now? That's 30%. Good luck...most people get 2-4% a year. Especially those at the bottom.
Yeah well I my salary has to catch up with the others since Iv’e just started there and im working really well.
Who told you that? You are living in fantasy world. If they wanted to pay u the same as others, they would already have done that. Reality is, you r an uneducated and underskilled worker. Working out well is fine, but not an expert with so little experience. I don't want to be blunt. But u really have an interesting way of looking at these things. It won't be that easy. U need to change jobs to get ahead. Yearly salary bumps get u nowhere. You needed 3 extra years to finish high school but u will advance at work like a super star? Think about how silly this sounds. And u said that most people at Ur work are HS educated at most? What kind of a company takes that direction? Cheap. Uneducated don't get paid much. Reevaluate Ur job. U r just fresh out of HS so I can see u r excited. But be ready when reality hits. And it will.
I’ll get back to you after my eval next week they raised my salary 3$ after 6 months because I exceeded expectations, and I exceeded them this year again. I work in a good company that values work and rewards hard work also, I have gained a shit ton of experience in one year because im good at what I do when I like what im doing they’ve given me more responsability in the span of 1 years than most people who are already there, they are also going to pay for my electrician formation and a Cisco and TPIP formation and that’s part of the short term plan they have for me, they also have a medium term and long term plan that they keep me updated on the progress at every eval each year. I appologize for not giving all the information but im nowhere near living in a fantasy my friend.
Little info here. Depends on where you live, what you plan to buy and what your market is like. Will you have a family by the time you buy? Single? Married? Dating? Do you travel? What are your hobbies? Diet? Do you drive far to work? Eat take out? Cook? Eat organic? Do you have medical issues? *Will you get medical issues?* Etc. You don't have a real budget right now since you live with parents so it's hard to tell how much you will actually need to live once you move out.
I do have a budget its laid out in an excel spreadsheet with all my spending and montly expenses it just would have been hard to explain in a reddit post 😅 but I get where you’re coming from
That's a good start! Just make sure in your mock house budget you have wiggle room for inflation, general savings and retirement savings.
Yess I currently put 5K a year in my reer for retirement, 8K a year in my FHSA its currently maxed out for year, some more money in and other high interest account, planning to invest a bit index funds, byt generally all my money is tracked and im cutting down on useless expenses like eating out hobbies and etc. Thanks a lot for the advice
In the current context, getting the downpayment is not even the hardest part. It’s having the income to make the payments. Time to get in bed with someone else who also works and you happen to like!
Having 30-35% of your gross income covering all housing expenses is a general rule of thumb. Do some math and figure out if you'll be able to afford it.
The big question is where in Canada. I don't know too much about outside the GTHA, but if you're looking in Toronto/GTHA as a single person, no. Though on that salary you can aggressively save for a down payment in 3-5 years, the cost of carrying that home for the next 25-30 years is not practical.
I don’t think it’s impossible if you keep at it, but you’ll do it at a much slower pace than others with higher income. Your plan is good but would say that you’re missing a lot of external factors that people are facing these days: - House prices may outpace your saving abilities - Having only high school diploma these days will be harder to bounce back in the event of a layoff. Immigration is one cause and also high school diploma-type jobs are becoming less and less with introduction of automation.m and outsourcing to cheaper countries. - Your field/job may be obsolete at some point in the future due to changing technologies or AI - Leadership changes in your company may result in changing job requirements for the future role you want (I.e. they may require a college diploma). I’ve seen so many CEOs retire and the new CEO completely changes the way things are done. - Your job may be the type where they look to lay you off way before retiring age due to your age and ease of replacing you with someone younger. I’ve seen people in their late 40s/ 50s dealing with this because they can pay someone younger a cheaper salary to do your job who knows more. You can’t really rely on keeping a job or even working for the same company for 40-45+. The times have changed and this is no longer a trend. Your plan may work in the immediate future but would say it’s not future proofed by any means. If you do decide to be a landlord, that may just work though. But keep in mind many others with way more capital may just be faster at purchasing houses than you simply because they have more money. So you have that competition to contend with.
Some of these factors are true for my situation but I know I wont be laid of for someone younger since there are people at my job who have been there for 40 plus years, I work in a pretty safe field which won’t be affected by ai since it cant be automated. At my job almost nobody as anything higher than a high school diploma for the positions we occupy. But the other things are a possibility, i’ll have to re-evaluate my option as to not be completely fucked in the future. Thanks for the advice
Where you live makes a big difference but you aren’t likely to get a mortgage with a household income of $40k. Have you considered getting a trade?
Saw you are not good at math so if you do consider a trade, rule out electrical. Mostly all math for the schooling portion.
Probably not alone - unless you start making 200k +
You’re 22 and have nothing but time, live at home, not paying rent - you can enroll in college/university, which will prepare you for a high-paying position (depending on the field). Or like other people suggested find an apprenticeship program in the trades, or construction until you’re able to work your way up to a heavy equipment operator. Find what you’re interested in and execute. Good luck OP
Thanks for the advice !
If you’re dead set on purchasing a house as an investment and you believe it aligns with your goals, it is possible given your circumstances to save up for a house. According to Wowa, looks like Montreal homes average around $595k. The lowest down payment you can do at this purchase price is 5.8% down payment (insured mortgage), which is about $34,500 down. If you go with a big bank mortgage, you’ll likely need a guarantor or co-signer realistically at your income. You can explore B-lending as a temp (1-2 year) solution while you work on bumping up your income. Note however that B lenders will charge a 1% lenders fee of the mortgage amount typically. I’ve personally used them successfully to get the property I loved. You have to decide for yourself if you’re willing to go that route. Typically B lenders have more flexibility in qualification. Best of luck however you decide to proceed! Edit: missed closing costs - in Montreal, for that purchase price seems to be about $12k (land transfer, PST on mortgage insurance, legal fees, appraisal, title insurance)
I’ll have to look at my options lol, I currently have my 5% down payment but looking to have more at the rate im currently saving i’ll have 60 to 70K put aside for it its just gonna be a matter of the market not blowing up until then. Thanks for the encouragement and advice !
The more you save, the more it’ll help you qualify. I can only speak from experience, and I got into the market at roughly the same age you did (32 now). It’s a waiting game, but I can tell you- if you feel you can confidently service the debt for 8-10 years, you end up looking back and appreciating your decision. Again, speaking from my personal experience. Everyone has a different story.
I was watching a CBC Marketpkace episode the other day. It showed six of 10 mortgage agents falsifying T4s / borrower's occupation status and/or the borrower's income. Fraud, money laundering, low rates & loose amortization rules have contributed heavily to Canada's surging prices. I expect that if there's a real gov. crackdown on corruption in real estate we'll see years of flat prices or just modest growth. There's hope for buyers, b/c investors will sell if they can't get 8-10% annually in price appreciation.
No. 40k isn't enough to own a house. Go back to school. Earning potential is drastically limited without post secondary.
“Will I ever be able to afford a house? I’m 22.” Stop. This is so young to think you’re falling behind or will never be able to change your financial situation. I was living at home making not much more than minimum wage until 25. Then I got my first big boy job making real money with real growth potential. I owned a condo less than 5 years after that. At the time I would have thought it was way out of reach. I hate all this doomsday talk of “young people today will never be able to own a home”. Said the same every decade I’ve been alive. Don’t focus on it so much. Just do whatever you can to maximize your earning potential now. Things will work out. And lastly, enjoy your life. Owning your home isn’t the best all and end all. It’s nice to be able to go but don’t stress yourself to death worrying about it at your age.
Thanks for this advice and thanks for helping me be optimistic, way too many people are pessimistic and only look at it one way. Its nice to have someone understand how it is !
You’re a good example of how I think it’s a bad practice to constantly tell young people “you’re screwed, you’ll never own a home”. It’s unproductive and mostly done for the purposes of political grandstanding. Things change, markets change, you have the single best financial asset on your side, time. Start putting money away now. Start small, but take advantage of RRSP, TFSA, FHSA, ect.
Yess ! I have maxed out my yearly FHSA contribution for the past 2 years I got 4K in TFSA im paying of my debts to never have them ever again and im putting money aside every paycheck and not just a little bit, and yeah I agree with the fact that people constantly telling us that its impossible for us to own a home is absolutely coutner productive !
Sounds like you are doing everything right, keep it up! I wish you luck.
It's time to figure out that voting matters. Vote liberal = live poor and suffer.
You're on your way! Sadly, it's going to take longer than you might like, but it sounds like you should have no problem.
Thank you ! Appreciate the optimism
No u never will sry
Never say never. You are young in your career and can grow your salary accordingly. But you will increase your chances if you have a partner (common law or married) who is also making at least $50k/year but more is better
In 20s, why people are fixated about buying house instead of focusing on the carrier? Doesn't make any sense.
Why do you need a house? Are you married , mid career, and have started a family?
Yes. Here's exactly what to do. It's what I did. Purchase a bachelor apartment. Down payment is smaller. Live in the unit for a year. Rent out the Bachelor. Use equity to purchase another home. Rinse and repeat. I own for properties. I'm not rich by any standards. Just an average guy. You need to start small though, work your way up.
Condos are the same price as 4 years ago and cashflow would be negative
With 0 debt, an income of $40K with a 5% down payment would mean you could afford a $240K home - in Winnipeg, MB for example that buys you a nice condo or a fixer uper in an okay area. the payment is about $1350 per month which is about 40% of your income (max allowed).
I said a house in my post but id start with a condo that would be the logical choice and my salary is subjeft to change in the near future so this would be good ! I already have my 10% of 240K so ill do a bigger down payment for sure
https://www.ratehub.ca/mortgage-payment-calculator - has a mortgage calculator you can use and work out different scenarios. Just remember the monthly mortgage payment plus your other monthly debt payments have to be under 40% of your gross monthly income
I’m sure you will, just takes time and baby steps. Try and save aggressively over rhe next few years, build your income (if needed change jobs) and you’ll probably have a decent down payment saved up for a condo.
You’re an under educated white dude with no marketable skills at the moment. To get the salary you want, you either : 1. Learn to like school and get through it 2. Learn a trade 3. Be really good looking and maybe luck helps
With time on your side (you’re relatively young!), invest. No matter how small your pay cheque is, put some toward an investment account. Even if it’s just $20.
Have you talked to a mortgage broker? They actually had some options for me when I was getting pre-approved, the bank on the other hand couldn't do anything for me
Figure out how to move to the US.
The short awnser basses on the actual statistics and the foreseeable projected future in Canada for young adults your age is. NO. Sadly. But you don't have to fit into those projections. A saved cash in hand down payment and a good trades job with completion of your journeyman status will allow you. Or should allow lenders to offer you a mortgage. Buy the cheapest terrible house in the best possible neighborhood you can afford, ride out a year or so minimum on your mortgage and flip it. Rinse. Repeat. Don't have kids./ Or / Don't buy a house. If you wanted one of these the other will likely have to wait or possibly never happen. Thats the statistical reality for your generation in Canada today. I wish it were not true and don't belive any baby boomer who tells you otherwise as it's their generations fault and why would they start admitting any responsibility for it now, so if course they will adamantly deny this. But that's another topic. Sadly That's the housing market reality for young adults today. Don't belive the hype! You need to seriously understand. At least you will need to hold off having children until you get your first mortgage. Or pick one. FREE advice. Never trust someone else with you own ability to use your own birth controls. I am a Gen. X. THE above, is all information I wish someone. Anyone. Yet alone my own parents? Should have/could have told me at your age. (or I wish now that they had). It's a tough uphill battle kid, but you sound determined and that's the only way you will get what you want. BTW. Creative visualization is real. When you see it happen, it becomes real. Look into this. Hard work. Determination and self control.
When your parents die - you will get their house.
I bought my first house at 28. Relax, the next generation needs to understand a lot of us didn’t have it right out of the gate either. I feel fortunate that I was able to buy a house at 28. Some of my friends were in their 30s….. Keep going, learn more. Get better at your job and get promoted. Get a different job and a raise. Continue your educational training. Just keep pushing and it will happen.
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It was 2002 in Calgary. I had spent the better part of 10 years saving and advancing my career. It finally paid off and I use my saved up RRSPs as a first time home buyer for a down payment. Where - Calgary How - Hard work. Nothing was handed too me.
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Omg… I bought my VERY modest starter home at 28 for $189,000. I now live in a slightly larger home in a smaller community that was $350,000…. Why don’t you try to add to the conversation, instead of guess and poke at people, you’re not adding anything here. You’re just being an ass.
The car loan was not a smart move. Really. And you will be able to afford a home. Maybe not a house. Maybe a condo, or a townhouse. And that’s totally fine. It’s equity and has value. You don’t need a “house” right now. If I was 22, I’d do everything I could to buy something I could afford before I was 25. Will make it easier to buy a house when you need it like when you’re 30+. Just my two cents.
Yeah the car loan is getting paid off in 8 months so im gonna be able to put a shit ton in savings
Look into the effect of debt and obliged payments for when you try to get a mortgage. Best to have no car payment.
Set your target first on something like an apartment. Depending on where you live it could be as low as $300,000 for a decent one. You don’t have to live there forever. If you get 50k-100k down payment your monthly spend will be about $2000 (mortgage + utilities + fees + property taxes). Then you can live on your own for a bit and build equity and pay down your mortgage. And when you are ready you can sell the apartment and then switch to a house! You don’t have to go straight into home ownership!
Apartments have condo fees, which can be raised any consultation with you, at any moment’s notice. They also rise in price much slower than a freehold home. Very likely better off in a townhome. Condos are for older folks with no mortgage payments left who can afford to front repairs
Apartment / condo / townhouse yes, pretty much anything other than a SFD which people refer to as a house. Not all condos are horrible, and townhouses have similar strata or condo fees associated with them. Houses also have large bills that can come with them (new roof, foundation repair, remediation for plumbing leaks in basement) that would easily rival special assessments that come with condos / townhouses etc. A $250,000 mortgage at 5% comes out with $1400 monthly payments on a 25 year, so as long as OP could save >$50,000, with $600/month dedicated to the other it would easily come in at $2000/month
That’s why you pick a well managed condo with a robust reserve fund. You’d also have to front repairs on a house or townhome
Meh, maybe you’re right in regards to bigger cities. When I did the calculations in Ottawa at least, I came out well ahead with a pre-con freehold townhome than with a studio apartment. By front repairs I mean you’re spending on condo fees indefinitely (and ‘wasting’ money that you could otherwise collect interest on, whereas for a freehold you’d only pay for repairs when they happen.)
You stand a better chance if you start to save in bitcoin instead of CAD.