There's also that side of the coin: "Living beyond your means".BigQ wrote: ↑Sun Oct 30, 2022 8:04 pm Until Canadians aren't a $200 shortfall on their next paycheque away from financial trouble, it won't change. Beggars can't be choosers.
I flew with a guy a few weeks back, new 705 FO, gf is a Rouge FA, 1.2 million dollar house in YUL.
That guy WILL take whatever overtime he can get.
The formula is pretty simple to calculate, and almost impossible to achieve (Given the high cost of housing in Canada)
Let's assume a couple each makes 50K a year before tax, and 30K a year after tax & other deductions. That's $60K a year take home, combined pay. That's roughly around $5000 a month in their bank account.
1. Canadians shouldn't really pay more than 33% of their income on housing. For the example given above, their budget would be around $1650 per month to spend on housing. Of course, that's not going to cut it in most cities now, even for a small 1-bedroom apartment. The reality is most Canadians families spend around 50% of their take home pay on housing. In this example, it would be around $2500. Even that is peanuts for someone looking to live in Toronto, Vancouver, Montreal or Calgary (with the last two being somewhat more affordable)
2. I don't even know what the payment on a $1.2 mil mortgage would be. I'd guess (at 3.5% interest) somewhere around $4000-$5000 a month. That's way out of reach for an F/O and F/A's combined salaries, unless they have some sort of other income (side business / gig) or financial aid (family members, etc)... A 3rd option would be to have had a substantial down payment that would bring their mortgage down.