Does anyone know if the new mortgage stress test rate of 5.25% applies to ONLY <uninsured mortgages>?

From all the literature I've been reading, it only talks about <uninsured mortgages>, it doesn't say anything about <insured mortgages>

Does that mean the <insured mortgages> will stay at 4.79% for the stress test?

$345K after or before tax?
The average tax for those high earners are nearly 35-45%

Also for physicians important to distinguish between what they bill and what they take home. Overhead is typically 25-30% unless your specialty is wholly hospital based.

Also the student debt ($80K tuition + living costs above and beyond undergrad/grad school).

The tax one is tricky, most physicians incorporate and the majority of billings goes into the corporation, but yes at the end of the day they’re still looking at 35-45% overall tax rate.

Your doctor is doggin it if they only make 145k... my GP is only working part-time on his way to retirement and he made 350k himself on the 2020 BC Government report!

Dunno? I haven’t looked in a few years but maybe that year she was off on maternity or somthing as I know she’s had a few kids since I’ve been with her. She was probably late 30’s early 40’s when I first got on with her

Honestly the difference between 345k before or after tax weirdly enough doesn’t push you through to that next segment of housing etc. Imo lol..

You know the entire userbase is getting old when we go from talking about NOS and Integra Girl to speculating on the salaries of people able to afford detached homes that we can't :lol

Our condo water damage deductible went from 50k ->250k -> 350k in the last 3 years. This is getting stupid and fucking corrupt. Brb paying more for a insurance for a 550sqft condo than people with detached homes.

Keep in mind that the vast majority of detached homes in East Van have rental income - $2-4k/mo of it. Even most duplexes have at least an unauthorised suite. That offsets a sizeable chunk of the mortgage (it's more than a third of it for me). It's only West of Main that we see detached homes without suites or very small suites as the norm (The Cambridge one that sold for $3m+ is unusual for East Van)

On a typical East Van detached home with 2 suites we're really talking about someone carrying $1.5-2m in mortgage after rent (and not including whatever downpayment they have). That's not bad for a high earner IMO.

Nothing against you but I'm sick of hearing this. Yes so many high earners want to come home from their high-earning and presumably high-stress/long-hour job and deal with their 2nd job of being an amateur landlord. And we wonder why there's such a brain drain of millennials out of this city.

Having fuck you money should give you options, not tie you down in this fucked up gig-economy we have going on.

I read your post as "when I first got with her"... really tee'd it up with the "since I've been with her"... was getting ready to give you a resounding my man :awwyeah:

Agreed. If you are lucky/hardworking enough to have a 6 figure job x2, you shouldn't normalize or try and justify the bullshit that you have to deal with to live the life of an average middle class person 20 years ago. Working 60 hours a week isn't reasonable, or a good life. Busting your ass to be at the top of your career shouldn't leave you broke after you pay your bills. Success is useless if it doesn't offer you the fruits of your labour. Not everyone deserves a mansion, but everyone deserves a home, and that includes the guy that pours the coffees, the guy that mops the floors at the hospital, and they shouldn't have to choose between that and eating healthy food, or being able to pay for their bus pass to get to work.
I go back to the fact that no one should be able to own homes as an investment, especially those that don't even live here. I'm not just talking about the luxury of a single family home, but condos and such. The distribution of wealth is a problem. The generational wealth, especially from families who have done nothing for it but be lucky with where they have lived, is a problem. People say that a handout is motivation for people to not work for their success, to not try and move forward, but the truth is the narrowing opportunity for success is far more demotivating.
Life shouldn't be a fuckin grind. Hard work and intelligence should be rewarded in all sectors of life, as all of them have proven important to making a place worth living. We will be a safer, more thriving society as a result.

^nah mate it's canadia only the finest of BMW's for VPD and waterfront hotels for the homeless

People constantly talk about being landlord is a nightmare, its not.

I have 3 tenants over the last 2 years, the only thing ive had to do is replace a toilet once (they were obvs banging on it and cracked the tank), paint touch ups / sink unclogging during turn over, and a probbaly a half dozen emails to strata over X and Y that sorted them selves.
One of them even cleaned up the leaky oil from the previous tenant for me, i told him to take off 100$ from his rent because i did not waste 2hrs of my life dealing with it.

Well... lucky you? Glad you had a great experience but that doesn’t make it the rule or standard.. and part of what they’re saying isn’t about having good tenants, it’s about coming home and other people living on your property and never feeling like it’s your own place to do whatever.

Sure, being a landlord isn't a "hard" job per se but it can be a time suck. If you're putting in 80+ hours a week as a corporate lawyer or whatever your free time is precious. At what point is the marginal return not worth it? Same reason I don't want to drive Uber or deliver Amazon packages on top of my 9-5 (7-6 now- FU covid) even though I can earn some extra scratch.

any thoughts on the Townhouse market in Vancouver, particularly in South Vancouver? Do you see prices to continue to go up or will it be the first to sink if the market "corrects"?

We've been looking around the Marpole area and new pre-sale units are going for 1.3-1.5 mil. The location is not the most ideal, but at least it is within a short distance from most hotspot.

https://vm.tiktok.com/ZMexnhAuT/ Real estate right now.

EDIT:

I followed up with a couple of mortgage broker contacts, updated stress test rules are for both insured and uninsured.

Any townhome 3bdrms and up will remain in demand. This isn't just Vancouver proper, 3bd 15-20yr old townhomes in PoCo are $900,000 now, same time last year they were selling for $650,000.

In the last 2-3 weeks there seems to be less upward pressure on prices so less "swinging for the fences" pricing on the whole. Maybe a lot has to do with the glut of sellers with extensive equity unloading mediocre supply into the market but fact of the matter is location will determine demand. What we used to think of having a Vancouver, Richmond or Burnaby address as "ideal" has extended to the Tri-cities and western valley today. It's unsettling to see markets like Chilliwack exploding with demand.

People who work 80hr weeks choose to do so, if your addicted to cash moneys, thats fine, just dont complain about it

Move out of vancouver, stop living over your means, learn to save instead of spend

Its a blessing to live in vancouver, or anywhere in canada, regardless of your income / housing situation.
Like someone else said, there is a serious wealth distribution problem on this earth, be overly grateful for what you have, and where you live

When prices were a little more palatable I don’t really get the argument against being a landlord with a basemen suite etc.

If you’re paying 700-1 mill for a condo, you’re paying strata, etc. And you could still be surrounded by morons

When detached were still 1.2-1.5 you could have your own property, take the income from the suite to make up for the difference, and actually get to choose who your Neighbor is.

I completely agree that people shouldn’t have to be relying on one or multiple suites in order to live in a detached home. But in terms of what you potentially have to deal with VS “being free” in a condo that has 10 units on the same floor. I wouldn’t say the freedom or “burden” of having a tenant is far greater than living in a condo building or townhome where you have zero control over who your Neighbors are or what they do

And yea, I get you don’t just find 200-400k to make up that purchase price difference

It's ironic seeing listings for $2M+ houses and they proudly advertise "renters suite" or "mortgage helpers" to help pay for the house.

I agree with this. If the extra work was putting you ahead, so you could retire earlier, pay for that gt4, take that Europe vacation, stack cash for your kids education. Yeah that's smart and worth it. If it's just to get by? Fuck that, I'll stick to the shoebox.

100%

It should be a bonus, not a requirement in order to service your mortgage

I get what you’re saying, but if your house didn’t have a suite, depending on the neighbourhood, it could also make it harder to sell.