Buying for the first time...
We are getting to a point of wanting to buy a home - maybe towards the end of this year or early next year. This would be the first property for our family.
Our budget situation is a bit complicated...
Gross salary is roughly 150k. I'm the sole breadwinner for the next few years. The plan is for my wife to go back to work part time and she would probably bring in 50k/yr (full time would be 120k-150k but we'd like to avoid that).
With all our expenses we are in the red by roughly 2k every month (rent is 2.7k). I'm only counting my salary less all expenses here.
By now you're probably thinking that we're crazy for even thinking about a purchase but it's not all bad. Before our two kids were born we accumulated some assets and they've done well. The problem is I would like to cash in as little as possible...
LIRAs (can't access those): 300k
Non-registered: 200k (No issues with cashing this in, we'll have to pay some taxes but very little).
Emergency cash: 50k
We would be eligible for the first time home buyers plan and I was also thinking to pull some money out of wife's RRSP (maybe 50k this year and 50k next year) to pad the down payment.
I'm ok to continue to be cash flow negative for the next few years but obviously don't want to overstretch ourselves. But how big of a mortgage would we be able to get?
Ideally would like to get a detached in Mississauga somewhere between 427 and Hurontario, closer to the QEW. Not looking for a mansion, typical 3 bed/3bath with a nice backyard.
Any thoughts/suggestions on our situation and how to best prepare for the purchase? Main questions are financial but would welcome advice on other fronts as well.
Thanks in advance!