Can this young couple afford to get into Toronto’s hot housing market before prices push out of reach?

Financial Post

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Situation: Recently married couple wants to buy a house, plan for children and eventual retirement

Solution: Put debt reduction first, house purchase and payment second, then use surplus for retirement

In Toronto, a couple we’ll call Tom, 30, and Helen, 27, are at the beginning of their financial lives. Recently married, they take home $8,500 a month from their jobs in industrial management with two different companies. They have already begun to develop net worth — they hold $108,000 in cash from an insurance settlement, have $45,000 in pension plans and a car they value at $5,000. Their immediate plan: buy a home soon and stop renting.

“Buying a home is the number one goal,” Tom says. “Housing in Toronto is very expensive, but who knows where it is going from here. Our aim is to get a stake in the market as soon as possible.”

Buying a home is…

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