We know that buying a home on your own isn’t easy. However, not all of us are able to buy with a friend, family member or partner who can both increase our affordability and help out with the mortgage payments. In this series, we’re going to look at the average starting salary of a profession, assume the buyer has no major debts and calculate what they could afford to buy solo.
In Calgary, the average starting salary for a petroleum engineer is $106,330. Compared to most professions, this is an amazing starting salary. And if you are earning this amount of money and don’t have any major debts, you can definitely afford to buy your own home. Want to see what a petroleum engineer can afford to buy in Calgary? Take a look.
After running the numbers through our mortgage affordability calculator, a petroleum engineer earning $8,860.83 per month could afford a home priced at $749,562. This figure is calculated with a 20% down payment ($162,140), an amortization period of 25 years and a 5-year fixed mortgage rate of 3.49%. Your maximum affordability is determined using your income and expenses. Lenders run your numbers through two debt service ratios – the gross debt service ratio (GDS) and the total debt service ratio (TDS) – both of which are explained on our site. For now, know that a petroleum engineer has a lot of buying options in Calgary.
Property #1: Downtown Condo
Location: 1421-222 Riverfront Avenue SW
Asking Price: $715,000
Features: 2 Bed, 2 Bath
Approximate Square Footage: 1,184
Property Taxes: $4,536/year ($378/month)
Maintenance Fees: $680/month
Parking Spaces: 1
This upscale condo is located in Eau Claire, Calgary and comes with luxurious amenities including a gym, yoga studio, hot tub and theatre room. If you purchased this condo with a 20% down payment ($143,000), a 5-year fixed mortgage rate of 3.49% and an amortization period of 25 years, your monthly mortgage payment would be $2,853. When you add in the monthly property taxes ($378) and maintenance fees ($680), $3,911 of your income would go towards housing each month.
Property #2: Suburban House
Location: 10415 Rockyledge Street NW
Asking Price: $749,900
Features: 4 Bed, 3 Bath
Approximate Square Footage: 2,340
Property Taxes: $4,572/year ($381/month)
Parking Spaces: 2
If you would prefer to buy a home in the suburbs, where you could eventually grow a family, a petroleum engineer has a number of options. With a 20% down payment ($149,980), a 5-year fixed mortgage rate of 3.49% and an amortization period of 25 years, your monthly mortgage payment for this home would be $2,992. Add in your property taxes and you’d be paying a total of $3,373 to own this home in Rocky Ridge Ranch.
When you get ready to buy your first home, the one you choose will have to suite both your personal preferences and match your priorities. If you work in the city and don’t mind commuting, you can purchase a large detached home in one of Calgary’s suburbs. However, if you want a shorter commute to work, it’s absolutely possible for a petroleum engineer to buy something closer to the downtown core.