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.

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