Submitted by Lindemann_ t3_z62akw in personalfinance
A few month ago we posted our financial situation and asked if we were buying too much house. Long story short, we were. Since then, we re-evaluated our needs and have decided that we will finally put an offer on a place that we think is more within our budget. However, we want to know if we are still buying too much house.
Property: 449,000% Down Payment: 20% (90,000$) 30 year mortgage @ 5.5% Mortgage + condo fees, municipal and school taxes, and insurance would be 2500$ (we are located on the island of montreal in Canada)
Our take home before tax is 120,000$. (We are both expecting salary increases at the end of the year). That amounts to around 6200$/month after tax.
After the down-payment we would be left with 20,000$ or so for an emergency fund. The condo is only 10 years old and would require no initial investing besides a new coat of paint.
We are 25, with 0 debt, no kids, and pretty frugal. We both started our professional careers about 1 year ago.
Should we be okay or are we still making a mistake and potentially buying too much house?
Thanks for all the useful feedback on our last post and inevitably this one too!