DannyKolenko

	Know What You Can Afford	< Back To Tips
	If you are presently renting and are looking at purchasing for the first time, here are some important points to consider when assessing what is affordable for you. Canada Mortgage and Housing Corporation can help you to determine what you can afford with an on-line calculator available free of charge at www.cmhc.ca. Down payment The more you can afford to put down as a deposit, the less interest you pay over the course of your mortgage. Mortgage Consider the type of mortgage, rate of interest and term. Consult with your financial adviser or bank loans officer to decide what works for you. Be sure to factor in the costs of mortgage insurance if applicable (required if the deposit is less than 20 per cent of the unit’s purchase price). Life insurance may also be desirable but ensure that the costs are also factored into your monthly budget. Fees As a condominium owner, you will pay a monthly fee toward your share of the operation and maintenance of the common property elements. You’ll need to know exactly what is and isn’t included in the fees for any condominium you consider, and how much you can expect to pay. Property Tax When you rent a place to live, the property tax is usually a part of your rent. When you own a condominium, you are responsible for paying your own property taxes. For a new condominium, the municipality where your condominium is located should be able to tell you how much you can expect to pay. For existing condominiums, this information can be provided by the real estate agent or the vendor. Utilities These may or may not be included in your monthly condominium fee. You will want to know what you might expect to pay for utilities such as natural gas, water and electricity.
	Source: CMHC	< Back To Tips