Edwin Lam 林玉德 

1-604-377-7572   

Your Friend

Your REALTOR®

 

Real Estate Associate Broker 地產代理  

Buying and Selling Real Estate in Metro Vancouver, BC, Canada,

please let me help you, make your dream come true.

      加拿大卑詩省, 哥華大都會 , 物業買賣 ,  交托我手 , 實現你的夢!  

 

Buyer’s Guide

(8) Your affordable Mortgage

Cashable Assets: 

Example 

Yours

Cash

$ 3,000

$

Stocks

$ 7,000

$

Mutual Funds 

$ 30,000

$

Canada Saving Bonds and Other 

$ 3,000

$ 

Term Deposits (GICs)

$ 10,000 

$

RRSP 

$ 7,000 

$ 

Total Available Assets

$ 60,000

$ 

 

(2)Your House Buying Expense 

In addition to your purchasing price, you will incur other moving expenses. For example, when you move in, you will want to decorate your new home. Plan ahead for this and include your immediate home renovations in your list of expense below 

 

House Buying Expenses  

Example                

 

Yours

 

GST

 

$   0

 

$

 

Property Purchase Tax (B.C.)

 

$ 10,000

 

$

 

Legal Fees

$ 1,000

$

Mortgage Set-up Fees       

 

$150

 

$

 

Moving Expenses

 

$ 1,500

 

$

 

Insurance Premiums (fire, mortgage)

 

$ 1,350

 

$

 

Immediately Home Renovations

(i.e. drapery, appliances)

$ 6,000 

$ 

Total House Buying Expenses

 

$20,000

 

$

 

 

 (3)Calculating Your Affordable Mortgage

When calculating your affordable mortgage the first step is to total your monthly household income. 

Total Monthly Household Income

 

Example

 

Yours

 

Your gross monthly income

 

$2,500

 

$

 

Your spouse's gross monthly income 

 

$2,000

 

$

 

Other regular income

 

$0

 

$

 

Total Monthly Household Income

 

$4,500

 

$

 

  Gross Debt Service (GDS) is the total of your monthly mortgage payment (principal, interest and taxes) relative to your monthly household income. Your GDS maximum could range from 25% to 30% for a conventional mortgage. For a high ratio mortgage, your GDS can be a maximum of 32% but you must also account for heating costs.          

  

GDS RATIO CALCULATIONS:

 

EXAMPLE          

 

YOURS

 

Total Monthly Household Income

 

$4,500

 

$

 

30% of Monthly Household Income

 

$1,350

 

$

 

Deduct

 

$150

 

 

Estimated monthly property taxes

 

 $    0

$

 

Half monthly condominium fees

 

 $    0

$________

 

Maximum Monthly Mortgage Payment ( based on GDS guides)

 

$1,200

 

$

 

 

If you need my professional real estate service, please call

Edwin Lam

Associate Broker

604-377-7572

edwin_realtor@yahoo.com  

Not intended to solicit properties already listed for sale.

There is nothing more important to my continued success as a Realtor than the referrals I receive from you who recommend my service to others.