$60k salary AFTER taxes? What price range of house could I afford?
First off, I live in Canada and I think if that was before taxes it would be around $150k if income tax was 40% right? Anyway, what price range of house could I afford for someone who makes that salary? Thanks
I don't have any debt. I'm 18 years old. And I do NOT want a credit card either. (There's no point in spending money you don't have with a credit card). And I spend quite a lot on clothes, but other than that I've got an $8k car and that's it.
bw022 - First off, I was using simple math since most people say you lose around 40% of your income to taxes. $60k IS 40% of $150k you f))ucking idiot.
- drew4allyouLv 57 years agoFavorite Answer
Haha, I hate bwo too, He's a total idiot.
Banks consider your PRE tax income.
Every Canadian bank has tools on their websites to tell you how much you can afford. There are several factors to include besides just income, so I suggest you take a peak.
Also, banks like to see a "credit history". Usually people build this up with a credit card. Even though you might not like the idea of a credit card, they are great ways to build your credit history.
With as high of an income as yours, the bank might not care if you have no credit history though quite frankly...
- bw022Lv 77 years ago
If you think that $150k less 40% taxes is $60k, you probably shouldn't be considering buying a house.
In Canada, you need a 20% down payment in most mortagage. In most markets banks will limit you to around 1/3 your income in mortgage payments or 1/2 in some markets if you have two incomes. Rough rule of thumb, with $60,000 per year, you would make $5,000 a month and be able to spend about $1700 on mortage payments. With a $60k down payment you might be looking at a $300k home with a 5% 20 year mortage for the remaining $260k.
Of course it would depend on your job history, children, spouse, stability in your profession, which city you were living in, your credit history, other debts you may have, etc.
- TraamoLv 77 years ago
It all depends on what other expenses you have, and how much money you need to live on, like how much you spend on clothing a week, and food, gas, etc.. Also do you have an expensive car, or cheaper car. It really varies. 60k a year after taxes is roughly 5k a month, so a house payment of 2k or less should still leave you enough money for other expenses, unless like I said, you go out to eat a lot, or have to have an expensive car, etc... Also the less your house cost, it leaves you more money to travel and other fun things.
Some people can easily live off 30k a year, where as some people need over 100k a year to be satisfied. I really can't give you a direct answer.
EDIT: Dude calm down. It's 40% DEDUCTION, meaning 60k taken from the 150k, leaving you 90k after taxes, not 60k. bw022 is right. Simple math. If you have 60k after takes, that would be over half your check taken out from taxes. More than 40%. Do you understand that?
- Anonymous7 years ago
this is just what everyone says. You are suppose to be able to afford a house 1/3 your monthly salary for around 10-15 years
so I would say around 150 - 250 K. But it depends if you have a family, 1/3 of your salary is a lot! So don't rush any decisions !Source(s): life
- How do you think about the answers? You can sign in to vote the answer.
- Anonymous7 years ago
Depends on the amount of debt you have, your credit rating and other things. Go to a bank and get preapproved to see how much house you can afford.