Comments on: A fine fit

By: T.O. Bubble Boy

T.O. Bubble Boy — Mon, 16 Nov 2009 21:47:08 +0000

It’s obvious – the only real answer here is: GO ALL IN!
Throwing 100% of the savings ($200k) at property in a boom/bust city would at least be exciting.

$1.6M house
$200k down
$1.4M mortgage

@ 2.25% / 35-yr = $4800/month (
@ 5% / 25-yr =$8100/month
@ 8% / 25-yr = $10,700/month

Good luck raising those kids and caring for the parents when you’re down to 1 income and trying to pay $10k a month just to keep that roof over your head.

Possibly the most ridiculous part: CMHC would be insuring this mortgage! How on earth is a $500k/year household the type of buyer that CMHC is supposed to be helping “get into the market”???

By: Frugalistas

Frugalistas — Mon, 16 Nov 2009 01:02:38 +0000

Health professionals should not be disclosing their salaries in such a public forum. It is very unprofessional. Though it seems like they were asking for your help, just reading your blog Garth tells them not to buy. As far as getting financial help, they have all the tools to get help.

Really, it sounds like these professionals were being a little unprofessional in disclosing their professions and their salaries.

By: CalgaryRocks

CalgaryRocks — Sat, 14 Nov 2009 23:24:13 +0000

#129 Cory on 11.14.09 at 12:23 pm
Oh, other than my rent dropping while I watch property taxes and fees consistently rise…..

Ok well, the fact is that my property taxes have gone up much less than 40$/month in the past 5 years while my mortgage has remained constant at less than 1K of which more than 60% now goes to the principal. This is still half what I would pay in TO, Vancouver, Ottawa etc…

So yeah, obviously that leaves a lot of money for saving for a rainy day as well as spending.

And if you don’t want to buy RE then there are plenty of affordable rentals, as you have mentioned.

By: X

Sat, 14 Nov 2009 18:57:01 +0000

Umm….regardless of how much you both make, or how much you both have to put down as a down payment, as you are both educated, if you feel this is the top of the market does it really make sense to buy at the top, if you don’t feel this is the top-then buy, and if you really love the house and plan on staying there 30 years (or a long time) then buy…

By: ARP

ARP — Sat, 14 Nov 2009 18:07:45 +0000

The 500k combined salary is entirely accurate.

The doctor is most likely a hospital based specialist under the alternate relationship plan (ARP), meaning he/she receives a salary from the government and paid for clinic space.

However, most ARP docs do not spend their entire income and instead shield it in their professional corporations where it is taxed at a flat rate of 14%.

These two should see an accountant to minimize their tax burden. They should most likely spend her employment income and save his professional income to minimize their tax.