"We are obsessed with helping anyone looking to Buy, Sell or Invest in real estate."
We develop pre-home buying strategies to ensure that you are well poised and positioned to buy. We commit to understanding your needs and goals – we use this information to guide our search for your perfect home. We pay close attention to the condition of the homes we view together and will raise a red flag when the need arises. Where we lack the necessary expertise, we will refer you to trusted professionals like home inspectors , contractors or mortgage professionals. When we find the right home, we determine a fair market value range for the home and counsel you on preparing an offer that takes various factors into consideration. Our objective is to get you into the right home, purchased at a fair price.
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If you’re in the market for a new home, take a moment to consider your finances. Here are some recommendations to make a smart informed investment. These recommendations are supported by Canadian Mortgage and Housing Corporation.
Are you ready for a home?
- Before we begin shopping for a home, you should prepare a simple budget that includes your take home pay against your expenses on a monthly basis. This way you can figure out where your money is going and have clear idea of what is left over on a monthly basis. If you are not sure of how much you’re spending each month, use a Household Budget Calculator. We like CMHC's household budget calculator because it will also provide your TDS and GDS ratios. These ratios are considered by the bank when making mortgage loan decisions. The more you know about where you stand the better prepared you are.
- As a general rule, your total monthly housing expenses (including mortgage payments, property taxes and heating expenses) should be no more than 32% of your gross household monthly income.
- In addition, your total monthly debt load (meaning your housing costs plus any car loans, credit card payments, personal loans, line of credit payments or other debts) should not exceed 40% of your monthly income.
- The amount of house you can afford will also depend on the size of your down payment. Once you have decided how large a down payment you’re prepared to make, use a mortgage affordability calculator to figure out the maximum home price you can afford. The better calculators will tell you how large a mortgage you can borrow, and what your bi-weekly, weekly or monthly payments will be (we like the ING direct mortgage calculator). If your down payment is less than 20% of the value of the home you wish to purchase, you will also need to budget for Mortgage Loan Insurance. This insurance helps you buy a home with a minimum of 5% down.
How much home can you afford?
- When preparing your budget in preparation for the purchase of a home, don’t forget that there are many up-front costs that related to buying a home. This can include a deposit (often due upon submitting an offer to buy), appraisal fees, legal fees, home inspection fee, survey, title insurance, land registration fees, condo fees, property taxes, utility bills, property insurance, moving costs and other expenses.
- Once you have completed your calculations, if the numbers don’t look encouraging all is not lost. You have options to improve your situation give us a call months before you wish to move into a new home, so that we can help you position yourself to “buy smart”.
