Flickr: jamesclay
We know that buying a home on your own isn’t easy, no matter what part of the country you’re in. However, not all of us have the luxury of buying 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 teacher is $58,500. Compared to most professions, this is a great 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 teacher can afford to buy in Calgary? Take a look.
After running the numbers through our mortgage affordability calculator, a teacher earning $4,875 per month could afford a home priced at $402,877. This figure is calculated with a 20% down payment ($87,146), 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 teacher has a lot of buying options in Calgary.
Property #1: Downtown Condo
Location: 301-210 15 Ave SE
Asking Price: $400,000
Features: 2 Bed, 2 Bath
Approximate Square Footage: 969
Property Taxes: $2,424 ($202/month)
Maintenance Fees: $394/month
Parking Spaces: 1
This condo is located in Victoria Park and comes with a number of amenities including a gym, hot tub, sauna, games room and theatre. If you were to purchase this condo with a 20% down payment ($80,000), a 5-year fixed mortgage rate of 3.49% and an amortization period of 25 years, your monthly mortgage payment would be $1,596. When you add in other costs, such as monthly property taxes ($202) and maintenance fees ($394), $2,192 of your income would go towards housing each month.
Property #2: Suburban House
Location: 52 Evansmeade Cr NW
Asking Price: $403,800
Features: 3 Bed, 2 Bath
Approximate Square Footage: 1,356
Property Taxes: $2,424 ($202/month)
Parking Spaces: 2
If you prefer to live in a detached home with a backyard, this option in Evanston could meet your needs. With a 20% payment ($80,760), a 5-year fixed mortgage rate of 3.49% and an amortization period of 25 years, your monthly mortgage payment would be $1,611. Factor in the monthly property taxes, which are $202/month, and you could pay just $1,813/month to own a home that is only a 30-minute commute to downtown.
When preparing to buy a home, the one you choose will depend on both your personal preferences and priorities. If you work in the city but don’t mind commuting, you can purchase a detached house with a bigger lot in the suburbs. But if you want to have a shorter commute to work, it is possible for a teacher to purchase a condo or townhouse close to Calgary’s downtown core.