Buy vs Rent -- From Globe & Mail

(c) 2009 F. Bruce Abel

"And if you're unsure how much you can reasonably afford to spend on a home, here's a quick and dirty calculation: According to the Canada Mortgage and Housing Corporation, monthly housing costs – including mortgage principal and interest, taxes and utilities – should not be more than 32 per cent of your gross household monthly income. To do the math: Take your annual income, divide it by 12 and multiply that number by 32 per cent. For example, if your combined household income is $88,000, your maximum monthly mortgage payment would be approximately $2,350. Anything higher than 32 per cent could mean you are stretching yourself too thin."


32% of your annual income. Remember that. But still, a plain-vanilla article.

http://www.theglobeandmail.com/life/work/crib-notes-for-the-rent-v-own-debate/article1271138/