(NC)—Whether your dream home is a Victorian character
home in the city, a sleek condo with three hundred and sixty degree
views, or a sprawling rancher in the suburbs, figuring out how much
house you can afford, is critical before making any decisions.
“A helpful place to start is by figuring out your
Gross Debt Service (GDS) Ratio,” recommends Ron Abraham, president of
the Ontario Real Estate Association.
Gross Debt Service Ratio is a calculation of the
total maximum housing payment that you can afford, including your
mortgage, property taxes, heating and cooling costs, and condo fees.
Figure out your GDS Ratio to find out how much house you can afford:
• Add up your gross monthly income and multiply by 32
per cent. This figure is the maximum monthly housing payment that you
can afford. It should never exceed 32 per cent of your gross monthly
income.
• You must also factor in one-time costs and
insurance. These include a home inspection, Lawyer fees, Realtor fees,
moving expenses and HST on new houses.
• Be sure to consider the size of your down payment, your interest rate and the number of years on your mortgage.
• For help figuring out what you can realistically
afford to pay for a home, enlist the services of a Realtor. Your
Realtor will help you understand property financing, taxes, insurance
and the steps you will have to take as a buyer to complete a real estate
transaction. You can also contact the Ontario Real Estate Association
(OREA) at 1-800-563-HOME for a free guide on home buying and selling.
www.newscanada.com
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Susan
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Sault Ste. Marie Ontario Canada
Buying your dream home can be possible if you'll just plan ahead and be smart on every decision you will make. You don't have to rush everything, proper planning will put you in the right perspective of owning your dream home sooner. If you can't have it now, save up money and calculate how much you still need to buy the home you want. There's always a possible way for everything. -Churchill Mortgage Dallas
ReplyDeleteBetter be realistic with your type of dream house, too. Yes, it's okay to fantasize about your dream house. However, when talking about buying a house through loans and mortgage, better align that type of “dream home” to your GDS Ratio. Carmen @ Houston.ChurchillMortgage.com
ReplyDeleteOwning your dream home is one of the best feelings ever, but there are lots of things to consider. First things first, you have to put into perspective whether you can afford it or not. Of course there are a lot of tools that can help you financially, but living within your means is still the best thing to do.
ReplyDeleteScott Sauer @ ScottSauer.ca