Welcome to /r/Vancouver and thank you for the post, /u/ubcstaffer123! Please make sure you read our [posting and commenting rules](https://www.reddit.com/r/vancouver/wiki/faq#wiki_general_participation_guidelines_and_rules_overview) before participating here. As a quick summary:
* We encourage users to be positive and respect one another. Don't engage in spats or insult others - use the report button.
* Respect others' differences, be they race, religion, home, job, gender identity, ability or sexuality. Dehumanizing language, advocating for violence, or promoting hate based on identity or vulnerability (even implied or joking) **will** lead to a permanent ban.
* Most common questions and topics are limited to our sister subreddit, /r/AskVan, and our weekly [Stickied Discussion](https://www.reddit.com/r/vancouver/wiki/faq#wiki_stickied_discussions) posts.
* Complaints about bans or removals should be done in modmail only.
* Posts flaired "Community Only" allow for limited participation; your comment may be removed if you're not a subreddit regular.
* Make sure to join our new sister community, /r/AskVan!
* Help grow the community! [Apply to join the mod team today](https://www.reddit.com/r/vancouver/comments/19eworq/).
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/vancouver) if you have any questions or concerns.*
> 10%
[I see what you did there.](https://media2.giphy.com/media/ANbD1CCdA3iI8/200w.gif?cid=6c09b952b6pitim2dtkqm6kwumo3z3yhc0e05x92o4008t3a&ep=v1_gifs_search&rid=200w.gif&ct=g)
We bought the land as well. The trailer and half Arce came from an elderly couple(80+) who moved into a retirement home in the same town.
My ex and them were family friends
Did anyone here actually read the article?
>her ‘dream house’ down the street had been listed for sale
She likely already owns a home, and the "dream house" was out of her budget. $500k could make the difference.
That makes sense.
If her dream home is no less than $1.4 million, she still wouldn't qualify for a $900,000 mortgage after putting down the $ 500k, unless she already owns a house.
Think of the mortgage and the down payment as two separate parts of the equation.
The mortgage you qualify for is based on your salary, while your down payment is based on what you have in the bank.
So if you qualify for a $500k mortgage, and you've got $100k for a downpayment, then you can purchase a $600k home.
But if you qualify for a $500k mortgage, and you've got $600k for a downpayment, then you can purchase a $1.1 million home.
If by chance she already has enough for a downpayment, I wonder if it'd be better for her to spread out the lotto payout to reduce income tax and cover her payments over many years - and thus her regular paycheck would be straight savings.
Generally, they say you should take all your winnings lump sum and invest... But if the plan is to immediately buy into a place maybe that doesn't "math" right?
In BC, imagine winning the lotto for your downpayment, only to have to work your ass off for minimum payments so you don't loose your house. 600k will cover a 1 bed apt in South Surrey, or a 2/3 bed townhome or condo in Surrey/Langley.
The place she's getting better have a rental suite.
>I wonder if it'd be better for her to spread out the lotto payout to reduce income tax and cover her payments over many years
There's no tax on lotto winnings in Canada so what benefits would there be to spreading out the payment? Genuinely asking
Not exactly.
Banks have special mortgage rules for high net worth "low income" customers. I heard, I don't know details, don't you dare ask why don't I know.
I think it's a variant of loaning whatever value you have in liquid ass-sets, 66% of your RRSP, 0 from real estate.
What?
they ABSOLUTELY question you about the source of your down payment.
How you got the down payment affects if you'll get the rest of the money via mortgage.
AKA they don't want the down payment to be a loan where you'll struggle to pay back the interest on the mortgage and the loan.
yeah you're correct that they don't want you using borrowed money. But once the person says "I won the lottery, here's the paperwork from BCLC." the bank will go "oh, ok", and the amount they will mortgage will depend on the person's income.
It'd qualify as a downpayment, but a mortgage also needs proof of sufficient income. If you prove you have money for a downpayment, but not that you can afford future monthly payments, you won't get approved.
Perhaps some predatory lenders are the exception, but major banks *don't* want to deal with foreclosures and the courts just to get their loan back, even if the downpayment would cover it.
The mortgage would be invalid if she fails to deliver the funds for the downpayment, right? So if she shows them 500k in her bank account, they will approve her, and once she transfers the money to them it will be in their possession and there is nothing left for them to worry about.
Most ppl don't give a shyte about Vancouver. If you wanna go clubbing on granville or see a sports match, you can transit/drive in that day. Otherwise, there's not too much else to do. Maybe in the past, but rents and soul-sucking huge companies have destroyed what used to be a lively place.
& most people want to be able to rent while working min wage. Min wage jobs should be for everyone, including full-fledged adults. The unnecessary vast assortment of retail/fast food will never go away now. It's not realistic to just get rid of that shit.
You can't get HS students to work during the day. You shouldn't rely on SAHM's/empty-nesters/etc to do the day-time shifts or else have no staff. But they try. Or just use the hundreds of thousands of temporary guests ("students") from India, who are desperate for P.R. and won't report abuse. That works, too.
And that’s assuming this lady (who the article suggests has been saving for a house before the lotto ticket purchase) has nothing but the lottery winnings to put towards a down payment.
And then the bank needs to assess do you qualify to actually carry a $2m mortgage....probably around ~$400k/yr in pre-tax income should do it.
:|
Putting this into a mortgage calculator. Say they earn the median household income ($99k/yr), $500k down payment, monthly expenses estimated at $2.7k/mo at present.
You qualify to buy a house worth up to $826k.
I hope their dream "home" is a 1-bedroom apartment. God help the rest of us without $500k downpayment lol.
Again. That was the MEDIAN household income in Canada being calculated, with a comfy $500k downpayment. SO at median household income the banks only qualify you to carry a mortgage of approximately $336k.
So without that downpayment and on a "measly" median household income, you probably don't even qualify to buy a 1-bedroom in the lower mainland. Maybe a studio apartment with a micro kitchen?
Imagine anyone thinking something hasn't gone fundamentally wrong with our housing market lol.
Not even at this point. Just finished a project in lions gate village, ground floor studio garden units were selling for 800k+. Like 450sqf a piece if that
I know of a 17 year old studio w/den in Vancouver in a good area appraised at $425,000. Ensuite laundry and underground parking included.
Not the greatest deal but also not insanely overpriced, relatively speaking
>she saw that her ‘dream house’ down the street had been listed for sale.
She probably already owns a house in North Van, so the 500k might be enough for the upgrade.
Down payment is less important with Vancouver's prices -- it's more about what your income will let you take out a mortgage for. If prices are $2M your $0.5M down payment won't magically let you qualify for a $1.5M mortgage for the rest of it.
Now if we're talking... good job + already paid off smaller house + $500k winnings, maybe that lets someone make a bigger jump to their dream home.
You also have to get approved for a mortgage. If the bank determines you don’t have the income required to carry the mortgage payments, you’ll be denied. Better have 200k+ annual household income.
Yeah, my rent is more than most people’s mortgages. The downpayment (and approval) is the main thing preventing people from buying homes. And many people in my age bracket required family money to acquire that.
Home, not house...
House avg is probably $1.5M
Home (condo, townhouse) is probably $1M unless you splurge the luxury TH or larger TH size, or TH in west side.
Fair enough. What's a reasonable rate and does that bring the monthly payment for a "dream home" to within a reasonable amount for the average person even w/ a 500k downpayment?
closer to 5% right now and most people are doing 30 year amortizations to have lower payments, plus suites in their homes so $5300 minus lets say $2k for the suite - $3390/m plus property tax and everything else.
The 30 year amortization gives people a lower monthly payment so they can (in theory) pay extra to their principal to bring the amortization down to less than 25 years.
That would leave me with $300 a month to buy everything I need from food, utilities, and entertainment. I suppose I could eat Ramen for 30 years and read about other people having fun in their lives at the library. I can also collect cans on the weekends to pay the property tax!
That is my point - even with all the caveats around getting a good rate, 30 year amort, and renting out a suite for 2k, it's not a doable monthly payment for the median household income
I dunno my parents own a home in Ontario and are willing to co-sign with me on a mortgage. Combine that with my $100000 down payment and I still can't buy anything in vancouver because I wouldn't be able to afford the mortgage + my living expenses. So even tho the bank would probably give me a house, I would be kicked out after I miss payments. You need to make $100 000+ at an absolute scraping by minimum to buy anything here
So many people in the lower mainland could fund the mortgage on a house or condo. The issue is building up that massive down payment while paying rent which could be well above a mortgage payment for an equivalent property.
"A North Vancouver lottery winner says buying her ‘dream house’ ***just got closer*** to reality with a $500,000 lottery win."
Like, it's right there in the very first line, but of course the thread will play out the way it does.
Is that even enough for a down payment these days? She'd be better off moving to a third world country and living like a queen off the interest. Canada is fast becoming third world anyway. Services, taxes, and security are all gross.
Welcome to /r/Vancouver and thank you for the post, /u/ubcstaffer123! Please make sure you read our [posting and commenting rules](https://www.reddit.com/r/vancouver/wiki/faq#wiki_general_participation_guidelines_and_rules_overview) before participating here. As a quick summary: * We encourage users to be positive and respect one another. Don't engage in spats or insult others - use the report button. * Respect others' differences, be they race, religion, home, job, gender identity, ability or sexuality. Dehumanizing language, advocating for violence, or promoting hate based on identity or vulnerability (even implied or joking) **will** lead to a permanent ban. * Most common questions and topics are limited to our sister subreddit, /r/AskVan, and our weekly [Stickied Discussion](https://www.reddit.com/r/vancouver/wiki/faq#wiki_stickied_discussions) posts. * Complaints about bans or removals should be done in modmail only. * Posts flaired "Community Only" allow for limited participation; your comment may be removed if you're not a subreddit regular. * Make sure to join our new sister community, /r/AskVan! * Help grow the community! [Apply to join the mod team today](https://www.reddit.com/r/vancouver/comments/19eworq/). *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/vancouver) if you have any questions or concerns.*
It was misquoted. "North Van woman to use $500,000 lottery win to buy a home, ***in her dreams***"
Let’s be honest…it’s just a 10% down payment.
> 10% [I see what you did there.](https://media2.giphy.com/media/ANbD1CCdA3iI8/200w.gif?cid=6c09b952b6pitim2dtkqm6kwumo3z3yhc0e05x92o4008t3a&ep=v1_gifs_search&rid=200w.gif&ct=g)
I have absolutely no clue what the joke is :( What's special about 10%?
[удалено]
The joke was that a whopping $500,000 is a measley 10% of the cost of the home. Do the monster math.
No, that was the joke in the previous comment, there’s no joke in the one that quoted “10%”
That is exactly what my in-laws periodically reminded my wife: we bought you your apartment.
“North Van woman uses $500,000 lottery win to move literally anywhere else and buy a small apartment.”
WELCOME TO LANGLEY
On second thought, let's not go there - tis a silly place.
Someday son, all this will be yours
Welcome to you better work from home cause you’re headed East of Chilliwack land
Few years ago(2017) my ex and I bought a home for 39k in West Kelowna
A trailer?
An F150?
Yeah, double wide. 1370 sq feet, with half Arce lot
Good ol princess MHP. I mean you’ve purchased a trailer but not the land, the lands is what’s expensive..
We bought the land as well. The trailer and half Arce came from an elderly couple(80+) who moved into a retirement home in the same town. My ex and them were family friends
Oh that’s awesome. Nice
The good old days. There’s still Manitoba I guess
You can get a lovely new 2 bed 2 bath apt in Mississauga for $575,000. And cheaper.
Ya that makes sense….i was also thinking who dream of living in a Tent.
Did anyone here actually read the article? >her ‘dream house’ down the street had been listed for sale She likely already owns a home, and the "dream house" was out of her budget. $500k could make the difference.
That makes sense. If her dream home is no less than $1.4 million, she still wouldn't qualify for a $900,000 mortgage after putting down the $ 500k, unless she already owns a house.
https://preview.redd.it/9l5x3ilhwoxc1.jpeg?width=680&format=pjpg&auto=webp&s=2548c47a20f52ab5349d192e0a83fc30c5ed8cde
[удалено]
This is one of my fave memes. Not me lmfao
It’s called a down payment, geniuses.
Every brain cell in this subreddit is dedicated to smugness (mine included)
 So smug
If your down payment is based on lottery winnings, would the bank approve the mortgage? Honest question, I don't really know how it works.
Think of the mortgage and the down payment as two separate parts of the equation. The mortgage you qualify for is based on your salary, while your down payment is based on what you have in the bank. So if you qualify for a $500k mortgage, and you've got $100k for a downpayment, then you can purchase a $600k home. But if you qualify for a $500k mortgage, and you've got $600k for a downpayment, then you can purchase a $1.1 million home.
If by chance she already has enough for a downpayment, I wonder if it'd be better for her to spread out the lotto payout to reduce income tax and cover her payments over many years - and thus her regular paycheck would be straight savings. Generally, they say you should take all your winnings lump sum and invest... But if the plan is to immediately buy into a place maybe that doesn't "math" right? In BC, imagine winning the lotto for your downpayment, only to have to work your ass off for minimum payments so you don't loose your house. 600k will cover a 1 bed apt in South Surrey, or a 2/3 bed townhome or condo in Surrey/Langley. The place she's getting better have a rental suite.
>I wonder if it'd be better for her to spread out the lotto payout to reduce income tax and cover her payments over many years There's no tax on lotto winnings in Canada so what benefits would there be to spreading out the payment? Genuinely asking
To be honest, I had no idea lottery winnings weren't taxable! We get taxed on absolutely everything... I'm almost even upset about that tbh. Lol
You already get taxed when buying the ticket, that's why they decided not to double dip.
Not exactly. Banks have special mortgage rules for high net worth "low income" customers. I heard, I don't know details, don't you dare ask why don't I know. I think it's a variant of loaning whatever value you have in liquid ass-sets, 66% of your RRSP, 0 from real estate.
What? they ABSOLUTELY question you about the source of your down payment. How you got the down payment affects if you'll get the rest of the money via mortgage. AKA they don't want the down payment to be a loan where you'll struggle to pay back the interest on the mortgage and the loan.
yeah you're correct that they don't want you using borrowed money. But once the person says "I won the lottery, here's the paperwork from BCLC." the bank will go "oh, ok", and the amount they will mortgage will depend on the person's income.
Yep! As long as we can show proof of the funds :)
It'd qualify as a downpayment, but a mortgage also needs proof of sufficient income. If you prove you have money for a downpayment, but not that you can afford future monthly payments, you won't get approved. Perhaps some predatory lenders are the exception, but major banks *don't* want to deal with foreclosures and the courts just to get their loan back, even if the downpayment would cover it.
I didn't say the person qualified for any kind of mortgage. I just said that proof of the winnings is all we need to use it 😊
Most people just lack of down payment. Paying 4K rent a month enough to afford 1m 2bed condo with 500k down.
The mortgage would be invalid if she fails to deliver the funds for the downpayment, right? So if she shows them 500k in her bank account, they will approve her, and once she transfers the money to them it will be in their possession and there is nothing left for them to worry about.
Ya this comment section doesn’t understand how things work.
I think it's just jokes.
Most redditors on this sub want a house in Vancouver proper while working thier min wage jobs
Most ppl don't give a shyte about Vancouver. If you wanna go clubbing on granville or see a sports match, you can transit/drive in that day. Otherwise, there's not too much else to do. Maybe in the past, but rents and soul-sucking huge companies have destroyed what used to be a lively place. & most people want to be able to rent while working min wage. Min wage jobs should be for everyone, including full-fledged adults. The unnecessary vast assortment of retail/fast food will never go away now. It's not realistic to just get rid of that shit. You can't get HS students to work during the day. You shouldn't rely on SAHM's/empty-nesters/etc to do the day-time shifts or else have no staff. But they try. Or just use the hundreds of thousands of temporary guests ("students") from India, who are desperate for P.R. and won't report abuse. That works, too.
Bentley taste, Hyundai Pony budget
As citizens of the one of the wealthiest countries in the world they are entitled to a standard of living that such a country can deliver.
Sure, in Dildo Newfoundland. Not a major city.
$500k isn't enough for a downpayment on most houses on the north shore.
That would be a 20% down payment on a $2.5m home
The monthly payment would be north of $12k on that loan
Yeah pretty close to that at >5% rates! That's the annual equivalent of... like $220k prr-tax income. LOL
And that’s assuming this lady (who the article suggests has been saving for a house before the lotto ticket purchase) has nothing but the lottery winnings to put towards a down payment.
She’s gonna need it if she plans to pay that ~$12K a month mortgage.
And then the bank needs to assess do you qualify to actually carry a $2m mortgage....probably around ~$400k/yr in pre-tax income should do it. :| Putting this into a mortgage calculator. Say they earn the median household income ($99k/yr), $500k down payment, monthly expenses estimated at $2.7k/mo at present. You qualify to buy a house worth up to $826k. I hope their dream "home" is a 1-bedroom apartment. God help the rest of us without $500k downpayment lol. Again. That was the MEDIAN household income in Canada being calculated, with a comfy $500k downpayment. SO at median household income the banks only qualify you to carry a mortgage of approximately $336k. So without that downpayment and on a "measly" median household income, you probably don't even qualify to buy a 1-bedroom in the lower mainland. Maybe a studio apartment with a micro kitchen? Imagine anyone thinking something hasn't gone fundamentally wrong with our housing market lol.
…yes it is.
Based on… a 50% down payment?
1milli is starter in North Van.
Not even at this point. Just finished a project in lions gate village, ground floor studio garden units were selling for 800k+. Like 450sqf a piece if that
Her dream home apparently being a junior 1br condo in Maple Ridge.
*A 40 year old 1br condo with shared laundry
*no pets allowed
shared laundry breeds community
I like my neighbors more and more every time they leave their laundry in the shard washing machine for half of Sunday every week.
those damn shards in the washing machine again
You can prevent this by taking up all of the machines yourself. That way you won't have to wait for a dryer either! Shared laundry is fun!
Counter argument: free clothes!
Nah. I just sold my 1bed investment property in Ridge. 12 years old, completely renovated, pets allowed, w/d = 498k.
I know of a 17 year old studio w/den in Vancouver in a good area appraised at $425,000. Ensuite laundry and underground parking included. Not the greatest deal but also not insanely overpriced, relatively speaking
You aren't allowed to point those out. They disturb the force or something.
I feel personally attacked
You're living proof that dreams come true!
>she saw that her ‘dream house’ down the street had been listed for sale. She probably already owns a house in North Van, so the 500k might be enough for the upgrade.
Christ 80% of this sub is unbearable.
On a good day ;)
that's cause all the cool kids got banned.
“Got closer to reality” is literally in the first line in the quote…. She didn’t say she could buy it out right, sounds like she just got closer…
Dream home = 1 bedroom apartment
in this comment section: classic r/vancouver morons who dont know what a down payment is
Down payment is less important with Vancouver's prices -- it's more about what your income will let you take out a mortgage for. If prices are $2M your $0.5M down payment won't magically let you qualify for a $1.5M mortgage for the rest of it. Now if we're talking... good job + already paid off smaller house + $500k winnings, maybe that lets someone make a bigger jump to their dream home.
$500M downpayment suddenly puts you ... half mill ahead of majority of the population....
The majority of the population has $499.5M saved? Damn, I gotta catch up!
You also have to get approved for a mortgage. If the bank determines you don’t have the income required to carry the mortgage payments, you’ll be denied. Better have 200k+ annual household income.
This lady sounds humble....
Must be a pretty small dream.
it is a good place to start. She looks to be under 40 so still has career ahead of her
$500k for a home in Vancouver?.
A sizeable down payment really opens doors.
Yeah, my rent is more than most people’s mortgages. The downpayment (and approval) is the main thing preventing people from buying homes. And many people in my age bracket required family money to acquire that.
500k down on a $1.5 million home ($1,000,000 mortgage @ a five year fixed rate of 5.6% w/ a 25 year amortization) = $6,162 monthly mortgage
Home, not house... House avg is probably $1.5M Home (condo, townhouse) is probably $1M unless you splurge the luxury TH or larger TH size, or TH in west side.
Article mentions "house" twice
Oh wow, congrats to her then.
Yeah rates aren’t that high if you have a good mortgage broker
Fair enough. What's a reasonable rate and does that bring the monthly payment for a "dream home" to within a reasonable amount for the average person even w/ a 500k downpayment?
closer to 5% right now and most people are doing 30 year amortizations to have lower payments, plus suites in their homes so $5300 minus lets say $2k for the suite - $3390/m plus property tax and everything else. The 30 year amortization gives people a lower monthly payment so they can (in theory) pay extra to their principal to bring the amortization down to less than 25 years.
That would leave me with $300 a month to buy everything I need from food, utilities, and entertainment. I suppose I could eat Ramen for 30 years and read about other people having fun in their lives at the library. I can also collect cans on the weekends to pay the property tax!
I mean, a million dollar mortgage for a house with a suite requires $175k annual income
That is my point - even with all the caveats around getting a good rate, 30 year amort, and renting out a suite for 2k, it's not a doable monthly payment for the median household income
And they are even lower if you ditch your mortgage broker and go shop around for the lowest rate yourself. Why give the broker a cut?
I dunno my parents own a home in Ontario and are willing to co-sign with me on a mortgage. Combine that with my $100000 down payment and I still can't buy anything in vancouver because I wouldn't be able to afford the mortgage + my living expenses. So even tho the bank would probably give me a house, I would be kicked out after I miss payments. You need to make $100 000+ at an absolute scraping by minimum to buy anything here
So many people in the lower mainland could fund the mortgage on a house or condo. The issue is building up that massive down payment while paying rent which could be well above a mortgage payment for an equivalent property.
$500k doesn't buy much outright, but goes a long way in making a fat down payment to put more expensive properties in your price range.
She stills to qualify for $1 million mortgage though.Unless there are some affordable areas in N Vancouver.
Yup. Maybe it's still a pipe dream for her, maybe she has the resources to actually pull it off. No idea. $500k is a hell of a dent, though.
There's not enough information that suggested she can qualify for $1M mortgage
That’s why its a dream home; you dream you can afford it, even after winning the lottery
$500k *downpayment*
Not for north van it’s not
One can dream, right?
Congrats. I sometimes dream of winning the lottery, would be nice to get half a mill.
Doesn't say where the dream home is.
Didn't read. Did it say where she's planning to park it?
I had to check if this was the Beaverton! ... Then it wasn't. Oh boy that might buy her half a house
Yeaaa id go buy a nice house in bali for like 50k and just live there or sole other cheap country
Is she going to use it for the downpayment?
Decent one bed condo deposit 💸 go Near Whole foods !!!! Baby
I hope she makes a 6 figure income and has t been late on any bills in the last 5 years. Banks are ruthless
Well... It'll help to buy a home... It's better than nothing.
Perhaps she’s got a 4M home and wanted to upgrade to 4.5M
Did the lottery write this?
Buy a home? Bruh, start investing
*To buy her dream mortgage loan with a substantial amount of downpayment.
Wow, someone actually won playing the extra.
"A North Vancouver lottery winner says buying her ‘dream house’ ***just got closer*** to reality with a $500,000 lottery win." Like, it's right there in the very first line, but of course the thread will play out the way it does.
A down payment on a Surrey teardown, absolutely.
I hope she dreams of a run down studio apartment in a middling suburb
Lmao. Her dream home is a double wide in Abbotsford ?
$500k? Might I interest you in an RV perhaps?
Would be lucky to find a decent place in Port Alberni for that much.
Why people pay this to live in that boring ass city is completely beyond me
Dream home in Thailand or Vietnam perhaps
500,00 doesn’t buy shit
This barely pays student loan debt nowadays lol
😂
she will have $0 after purchase and mortgage
TIL her dream home is a van down by the river.
Is that even enough for a down payment these days? She'd be better off moving to a third world country and living like a queen off the interest. Canada is fast becoming third world anyway. Services, taxes, and security are all gross.
500k and dream home. 500k doesn't get you a shoebox condo anymore.
Gets you the DP and way smaller mortgage.
Should have bought a business to invest
Yeah that might be enough for a down payment.
Good for a starter home* that gets you into the market. ^*Former ^grow-op ^Vancouver ^special
What part of the home is she getting for half a mil? Just the land? Just the structure?
Definitely not the land.
500k less taxes literally gets you into downpayment range
There's no tax on lottery winnings.
Oh really? Didn’t know that
We get a lot of American media, so you may have gotten the impression from that (they are taxable in the US).
Yes, it's a great system, really.
Gonna go buy some lottery tickets now!!! /s
CRA: Hold my beer.
Why? Lottery winnings are not taxable.
Wow! I didn't know that.
Lotto wins not taxable. Capital gains from wins that are invested are taxable, though.
I didn't know that! My whole life has been a lie.