Life ought to be good for a Toronto couple we'll call Max, a senior executive in a non-profit organization, and Jane, a real estate broker. Max, 43, earns $175,000 a year; Jane, 35, earns $25,000. Their combined gross incomes - $200,000 in earnings plus $44,000 a year in gross rentals from four properties - should provide a plenty of security for them and their two children.
But they don't really have that much security. Their first mortgages, including a Home Buyers' Plan loan, total $649,800 and their second mortgages add $107,500 of debt, for a total of $757,300. Add $5,000 on a line of credit and their debts are $762,300.
