1

Imagine if I earned $90000CAD annually (before Tax) in Toronto, what would be the most financially sensible maximum rental cost to bear?

Would renting a house for $2500CAD monthly be somewhat over-the-top?

Also imagine if I was married and my wife earned an additional $50k - $60k Canadian (before tax), would a $2500CAD monthly rental in Toronto be financially justifiable?

  • While interesting, this seems backwards if speculative. A better question might be how to calculate an appropriate range of rental costs given a before-tax income amount and marital status. – Brythan Apr 21 '18 at 17:26
  • I sort of answered in that light. I’d be happy to see an answer from a different angle. – JoeTaxpayer Apr 21 '18 at 19:26
  • Note really a proper answer, but... My answer would be "as little as possible, then save the excess towards buying a home". – Simon B Apr 21 '18 at 20:35
3

Good question, but the answer “depends” on many factors.

You are starting with 1/3 of your gross income as rent. In general, the rule of thumb is 25% or less.

But, it depends. Are utilities (heat, electricity, water) included?

More important, what does the overall budget look like, what’s being compromised for that 30%?

I know people who pay 50% to rent. In return they are a 2 minute walk to work. No car(s) or any transportation cost. The money saved and time saved each day makes the insane 50% pretty good when under scrutiny.

Does the 33% rent leave you room for savings, travel, etc? If so, no problem. That’s for you to decide.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.