What Can I AffordYou will need to estimate your income, expenses, investments, savings and debt to determine what would be an appropriate mortgage for you. Bank of Montreal has an interactive worksheet that can help you with this exercise. The Bank of Montreal website provides a description of various types of mortgages along with the advantages of obtaining a pre-approved mortgage.
Some examples of these guidelines include:
- Total monthly mortgage payments should not exceed 27% - 32% of your monthly income before taxes.
- Total monthly payments for the mortgage and other loans and credit cards should not exceed 37% - 40% of your monthly income before taxes.
To get an estimate of your mortgage, use Tridel's Mortgage Calculator.
Other Home Ownership ExpensesIt will be important to calculate all other expenses associated with a home purchase, as well as what you can afford for a down payment and mortgage payments. Monthly expenses can include: utility expenses (hydro,phone, cable, internet), entertainment, taxes, credit card payments, and any other recurring expenses.
You may want to check your monthly statements and credit card or bank statements (for any automatic monthly payments), to give yourself as accurate a picture as possible.
For further information, we suggest the following websites: Bank of Montreal, Canada Mortgage and Housing Corporation, and Royal Bank
Additional CostsBeyond the actual purchase price of the home, there are other costs associated with buying a new home. These are called closing costs and usually are about 2% of the total cost of your home.
Based on a $200,000 condominium in the GTA - some estimated amounts are:
- Tarion Warranty Corporation enrollment fee- $520 approx.
- Land Transfer Tax $1,725
- Legal Fees $750 - $1,500 plus disbursements
- Home insurance approx. $450/ year
- Hydro Meter (if applicable) $450 - $600
You will also need to allocate costs for moving, storage and decorating in your "new house" budget.
Financial ProgramsThere are several programs in Ontario, which are designed to help make the process of buying your first home easier.
Eligibility of buyers and properties are outlined as well as restrictions and other information.
Buying Vs. RentingIn today's economy, many people are choosing to buy a home rather than rent. In some cases, as little as 5% is required for a down payment, depending on the purchase price. After doing the calculations, it may be more affordable for you to purchase a suite then to rent an apartment. When determining your ability to rent or buy, you will need to compare your monthly expenses in terms of rent vs. maintenance fees, taxes and mortgage payments.
In buying a Tridel condominium, you would also benefit from a full recreational facility (would you still need to pay for a health club?), full security, parking & storage room may be included, in-suite washer/dryer, and quality construction.
Learn more about The Condo Advantage
>> History of TridelSeven decades of building condominiums has taught us a thing or two about building condominiums...
>> What is a Loft?Learn more about Loft Living and available Toronto lofts
>> Why Buy Green Learn more about Tridel Built Green. Built For Life.® program.
>> Condo AdvantageOwn your own home and let Tridel worry about the maintenance.
>> AwardsTridel's numerous industry awards
>> Relationships & OpportunitiesExplore the Possibility of Future Opportunities
>> Group of Companies Learn more Tridel quality through Property Management, Real estate, and Rental expertise
>> Maintenance fees Understand the value of the features you pay for.
>> Careers at TridelTridel's success is made up of the successes of the 500 or so individuals who work here.
>> What Can I Afford How to tackle the financial questions associated with new home ownership.
>> Construction Leadership Maintaining a leadership position in construction
>> Warranty Learn more about Tridel's extensive warranty coverage