Budgeting For Your New Home

Budgeting For Your New Home

BUDGETING A KEY FACTOR IN PURCHASING A HOME

THINGS TO CONSIDER:
• Ongoing housing costs, including monthly mortgage payments, taxes, heating, secondary financing and 50% of condominium fees (if applicable). These costs should not exceed 32% of gross annual income.

• Loan payments, car payments, credit car payments. These costs should not exceed 40% of gross annual income.
• Two to three percent of the value of the home to cover annual operating and maintenance costs.

• One-time costs, which include appraisal, survey, land transfer taxes, insurance, moving and legal fees. Consult with a lawyer to determine an accurate estimate of these costs (usually 2% of the value of the home).

EXPENSES TO CONSIDER:
• Appraisal
• Home Insurance
• Lawyer’s Fee
• Property Tax Adjustment
• Survey costs
• Fuel Adjustment
• Land Transfer Tax
• Interest Adjustment
• Mortgage Insurance Fee (CMHC)
• Mortgage Insurance Application Fee
• Other

PREPARING YOUR MONTHLY BUDGET:

INCOME = Monthly income (after taxes) + other income

Expenses: Monthly mortgage payment, property taxes, heating costs, home insurance, electricity, water, cable, telephone

Other: Car payment, auto insurance and repairs, gas, credit cards, other loans, groceries, life insurance, entertainment, vacation, clothing, other.

You can find our Mortgage Calculators at Mortgage Calculators Or get started with a Mortgage Application at Mortgage Application.