Calculate Your Costs

Here are some basic calculations you can do that will help you determine exactly how much house you can afford.

Buying a home involves many financial considerations. Some home buying expenses are one-time costs and others are ongoing commitments. In addition, there are other costs that you may not be aware of or that you may forget to factor into your calculations.

Homebuying costs

The Down Payment
If you have a down payment of 25% or more, you may qualify for a conventional mortgage loan which does not require mortgage loan insurance.

A minimum down payment of 5% is required for a high-ratio mortgage. These types of mortgage loans — for any amount in excess of 75% of the value of the home — are required to be insured against default.

The federal government and some provinces offer incentive programs for homebuyers. You should consult an investment or tax advisor regarding the value of these plans for your particular circumstances.

The Mortgage
A mortgage is security for a loan on the property you own. It is repaid in regular mortgage payments which are blended payments. This means that the payment includes the principal (amount borrowed) plus the interest (the charge for borrowing money). The payment may also include a portion of the property taxes. See current mortgage interest rates.

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If you are thinking of selling and want to know the real price of your home fill out our free Mississauga home evaluation form and I will contact you with all relevant information.