We know that buying your first home isn’t easy – especially if you’re buying it without the help of a partner or family member. In this series, we’re looking at the average starting salary of a profession in various regions, assuming the buyer has no major debts and calculating what they could afford to buy solo.
In Ontario, the average starting salary for a manager at Starbucks is $43,818. Compared to most professions, this is a fairly low starting salary. However, if you are earning this amount of money and don’t have any major debts, you can still afford to buy your own home. Want to see what a Starbucks manager can afford to buy in Ontario? Take a look.
After running the numbers through our mortgage affordability calculator, we can see that a Starbucks manager earning $3,651.50 per month could afford a home priced at $255,310. This figure is calculated with a 20% down payment ($51,075), an amortization period of 25 years and a 5-year fixed mortgage rate of 3.48%. 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 Starbucks’ manager’s salary doesn’t buy much, but it doesn’t price you out of the market either.
Property #1: Condo
Location: Oakville, Ontario
Asking Price: $239,900
Features: 1 Bed, 1 Bath
Approximate Square Footage: 599
Property Taxes: $1,806/year ($151/month)
Maintenance Fees: $313/month
Parking Spaces: 1
If you want to live in a condo, Southern Ontario is full of thousands in your price range. This condo in Oakville features new upgrades, and the building comes with both a pool and a gym. With a 20% down payment ($47,980), a 5-year fixed mortgage rate of 3.48% and an amortization period of 25 years, your monthly mortgage payment for this condo would be just $956. Add in your property taxes and monthly maintenance fees and you’d be paying a total of $1,420 each month to own this condo.
Property #2: Suburban House
Location: London, Ontario
Asking Price: $249,900
Features: 3 Bed, 2 Bath
Approximate Square Footage: 1,300
Property Taxes: $2,819/year ($235/month)
Parking Spaces: 2+
If you would prefer to live in a more spacious home, there are many cities in the province where you can find houses for $255K or less. This bungalow in London, Ontario features new flooring throughout, a renovated kitchen and a two-car garage in the backyard. It also comes with a finished basement. With a 20% down payment ($49,980), a 5-year fixed mortgage rate of 3.48% and an amortization period of 25 years, your monthly mortgage payment for this home would be $996. Add in your property taxes and you’d be paying a total of $1,231 for a home to call your own.