What is your Budget?
Before you start looking for a home, it is important that you become aware of how much you can afford to pay. This knowledge will allow you to spend your valuable time looking productively at homes which are within your predetermined price range. You can calculate a relatively accurate figure for yourself with the following information:
$ ___________ Down-payment
$ ___________ Plus: The amount of financing you can receive by the bank that allows for
comfortable payments.
$ ___________ Minus: Closing costs
$ ___________ Equals: Maximum price
As a general rule, the down-payment should be as large as possible. The less money you borrow, the smaller your monthly payments. Your deposit will form part of your down-payment. A deposit usually consists of 5% of the purchase price and is paid via Money Order or Certified Cheque 24 hours after subjects are removed from a contract.
