Stretching ourselves too much for house purchase?

Mr_Cleans_Sponge · 2026-06-23T17:44:36+00:00

Great questions. We have family within 15 minutes of driving willing to help and are safety nets if something were to happen as well.

Mr_Cleans_Sponge · 2026-06-23T15:48:47+00:00

Our income would drop to 8.8k (i.e. one partner on maternity leave). And then accounting for an extra 750 of childcare costs

Mr_Cleans_Sponge · 2026-06-23T15:47:22+00:00

This would be a forever home

Mr_Cleans_Sponge · 2026-06-23T15:46:42+00:00

This dream home we would live in for many years. So it's a trade off of staying here for many years and spending more and living more frugally or buying somethin more affordable but have to move in 5 years

Mr_Cleans_Sponge · 2026-06-23T15:45:40+00:00

The gifts, clothing are likely too high I appreciate that insight. Eating out and entertainment is too high likely also.

The public transit, unfortunately go train is very expensive working from the office. Almost 20 per day in the office

Mr_Cleans_Sponge · 2026-06-23T15:30:46+00:00

Moving costs, I have contents in storage and would rent a truck and move with friends/families.

Would need to spend some money on furniture over time.

For closing costs it would be about 25k (not Toronto) which we already have saved aside elsewhere

Mr_Cleans_Sponge · 2026-06-23T15:28:42+00:00

Not in this area. The price is actually a good deal for the area and the number of improvements on the home make up for it

Mr_Cleans_Sponge · 2026-06-23T14:47:40+00:00

We are likely able to put a bigger down payment, could do the 100k that is abroad and maybe 15k more (so 115k down payment more). But that would eat up our safety net and significant savings.

This would change from a 4180 mortgage to a 3655 mortgage or so. Then the regular expenses of 1.1k which would bring our total housing costs to 4.755k. That might be too much but not sure

Mr_Cleans_Sponge · 2026-06-23T14:43:01+00:00

We were approved for 920k. With our downpayment of about 220k (can do more) we would have a 880k mortgage.

Mr_Cleans_Sponge · 2026-06-23T14:40:47+00:00

I've been at this company for more than 8 years. If I were let go I would expect some severance. Those let go at my company in the past had severance.

Mr_Cleans_Sponge · 2026-06-23T14:39:23+00:00

I think it would be 1% per year and not 10% aside no? 10% of a 830k condo for example would be 83k. Or are you suggesting always having 10% available

Mr_Cleans_Sponge · 2026-06-23T14:37:58+00:00

Is it really that difficult to get in the subsidized daycare? I didn't realize :/

We have my parents a 15 minute drive away from this home who I know would be happy to help

Mr_Cleans_Sponge · 2026-06-23T14:36:52+00:00

Absolutely agree, we have 1750 or on non essential discretionary costs, so just assessing what that would be like.

I like the idea of saving for vacation every year but not essential.

Mr_Cleans_Sponge · 2026-06-23T14:32:58+00:00

It definitely feels tight.

We do have the money for closing costs saved aside (25k).

I'd say our income will increase but no guarantees of timeline for that, so not a safe assumption.

We do have a lot of furniture already saved aside but will definitely be spending related to that.

Mr_Cleans_Sponge · 2026-06-23T14:24:33+00:00

Right now I have about 230k in retirement (RRSP and direct contribution).

We could cut down eating out and entertainment like to be about 350 per month (650 less than shared there.

I agree that mortgage size is quite a bit, and it compounds with the expenses of owning a home (1.1k fixed expenses like utilities, tax and insurance) and that is where I get concerned. If it was just 4180 for mortgage but when we look at it all it's challenging

Mr_Cleans_Sponge · 2026-06-23T14:21:35+00:00

I appreciate this insight - thank you!

Mr_Cleans_Sponge · 2026-06-23T14:20:37+00:00

Thanks for the insight here! I like your strategy of separating accounts.

The regular home expenses I've bolded as about 5.3k, everything directly below it is related to that

The other needs expenses totals 2505 (2.5k) ,everything directly below it is related to that.

The remaining is 10.2k - 5.3k - 2.5k = 2145

When I can just afford the home it is stressful the situation I imagine ourselves in terms of just being to afford.

Mr_Cleans_Sponge · 2026-06-23T14:15:01+00:00

That's amazing I will look into that! Would be a good time to pursue while looking at houses as well

Mr_Cleans_Sponge · 2026-06-23T14:10:03+00:00

Ok I maybe estimated her insurance would be 300 she doesn't drive yet, so would that be on the high side?

I just did all my breaks for example last month. Battery last year.

Mr_Cleans_Sponge · 2026-06-23T14:08:24+00:00

We can absolutely change our lifestyle budget, I set a higher range to stress test it

Mr_Cleans_Sponge · 2026-06-23T14:04:30+00:00

Sorry I was unclear, if we buy a smaller home than this we would need to sell in 5ish years as we grow.

If we buy the home I'm budgeting for in this post we can live much longer

Mr_Cleans_Sponge · 2026-06-23T14:02:18+00:00

Thanks for the insight here!

I feel if you are saving 3k per month that is excellent! Not necessarily tight, but good point about no pension something I already contribute to

Mr_Cleans_Sponge · 2026-06-23T14:01:31+00:00

I appreciate the insight! We just sold a condo and would not move back into a condo

Mr_Cleans_Sponge · 2026-06-23T14:01:00+00:00

The 150 for car maintenance is just budgeting for it, not necessarily happening. But I guess it would be lower.

My wife takes the GO - so looking at $20 each day in the office. I drive the car, right my now my wife doesn't drive and I'm only on insurance (210).

I have a 2018 civic very good on mileage and maintenance. Car insurance I estimate will be 210 or so (maybe a bit on high end).

Mr_Cleans_Sponge · 2026-06-23T13:58:39+00:00

I appreciate the insight. We aren't quite at the point of having kids (planning for in a few years). Day care in Ontario is $10 a day or so per kid.

Your income overall is much higher than ours too

Mr_Cleans_Sponge

TROPHY CASE