Are you "House Poor"?
About a quarter of Canadians spend too much on housing costs, Statistics Canada says. But how can you tell if you’re house poor, aside from the fact that your bank account is hemorrhaging funds? To answer that question, dig deep, and we’re talking in your soul, not your piggy bank.
“Your first sign is that you’re beginning to resent your house,” says Certified Financial Planner Scott E Plaskett, CEO of Etobicoke’s Ironshield Financial Planning. “You don’t look at it with the sense of pride you did when you first bought. You now see it as the thing that’s standing in your way of other financial goals.”
CMHC suggests an affordable housing budget will cost less than 30% of a family or individual's before-tax income. Spend more than that and chances are you’re house poor. Those housing costs include mortgage payments, condo fees, property taxes and utilities. (Keep in mind other expenses, such as transportation and those of feeding a family.)
Click here for ways to cut down on housing costs courtesy of Yahoo! Canada Finance.
