Determining
what you can afford
Purchasing
a home involves both one-time costs and ongoing monthly expenses. The largest
one-time cost is the downpayment which usually represents between 5% and 25%
of the property's total price. A number of typical one-time expenses are addressed
in the Guide to 1999 Closing Costs. Other costs may include landscaping, redecorating,
furnishings, appliances, and repairs. Typical monthly costs of home ownership
would include mortgage payments, maintenance, insurance, condo fees, property
taxes and utilities.
Mortgage
Pre-Approval
The
most certain way of determining your home-hunting price range ability is to
discuss your particular situation with a mortgage expert. This resource will
be able to take a look at your income, assets and liabilities, and give you
and your RealtorŪ the price range of property that you can afford. Your mortgage
expert will answer your questions and help you determine which financing terms
and options are right for you.
Having a pre-approved mortgage will give you the
confidence of knowing exactly what you can spend on a
home before you start looking. You will also be protected
aginst interest rate increases while you look for your
new home. If you are a first-time buyer be sure to ask
your mortgage expert about the Ontario Home
Ownership Savings Plan (OHOSP). Your RealtorŪ
will be able to suggest one or more local mortgage
experts for your consideration.
