How To Get A Good Mortgage Rate For Home That Are Purchased In or
Much Home Can You Afford?
Even during a recession house hunting for the "affordable" home in Calgary can be
quite a challenge, with the high value of today's homes and condos for
sale in Calgary, making
it an increasingly difficult task. To create an accurate measure of
"affordability", some essential factors you should consider
are your income versus carrying costs and closing costs.
In the Calgary real estate market, when purchasing a home, the percentage of your income that you can
afford to spend must be carefully considered. Start by determining
your housing budget, or what you can easily afford to spend on a home
and its related expenses. Remember, the key word here is
"easily". Be realistic and think about your lifestyle.
Although it may seem feasible to handle a large mortgage at first, it
may require cutting back on other expenses, such as clothing or
furniture. Make sure that if you plan to make any concessions in these
areas, you're prepared to live with your decision for a prolonged
period. Owning a home can give you a tremendous amount of pleasure and
personal satisfaction, as long as your plan affords you with
sufficient resources to enjoy it with peace of mind.
The next step in your home buying plan is determining your carrying
costs. Calculate all monthly costs, such as the mortgage payment,
property taxes, insurance, heating costs and other utilities. Then add
a figure to cover yearly maintenance and upkeep costs. Be sure that
you also make allowance for a "contingency fund" to cover
unscheduled expenses such as a major repair or the replacement of an
appliance. Life sometimes has a way of surprising us, and you don't
want to start out with a budget that's so tight, there's no room for
the unexpected. Remember too that costs outlined on paper may vary
widely from the actual costs that may occur, so be generous when
One of the best ways you can ensure that the carrying costs on your
new home are affordable -- and stay that way -- is by keeping a
mortgage rate for a prolonged period. With today's low interest rates,
you can do that by locking in your mortgage for one of the longer
terms available, or by choosing a mortgage that can be renegotiated
without a penalty. Also, by pre-qualifying for a mortgage, you can
find out up front what your maximum mortgage payment might be, even
before your home search begins. I can give you some good
advice in this area.
After you've determined what portion of your income you can afford to
devote to home ownership, and you've calculated what your carrying
costs will be, you're almost there. The only other expenses to take
into consideration are your closing costs.
Closing costs may include home inspection fees, appraisal fees, title
search, home insurance and lawyer's fees, as well as a proportionate
share of property taxes, utilities etc. that may have been pre-paid by
If you're selling another home before you buy, you may also have to
budget for some bridge financing costs, depending on your closing
date. I, can give you all the details on this
option. In addition, you'll also have to budget for your relocation
costs. This could include such costs as a moving company truck and
labor, packing charges or materials, rental of a vehicle or trailer,
storage charges and more.
I can put you in touch with an extensive range of
suppliers and service providers, trusted for their reliable products
and outstanding customer service, offer special services and savings
to our clients to help take the stress out of moving.
To view my
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2000 - 2010
writing by Steve Kelly or as credited.
Calgary Real Estate consultant Diane Kelly, Discover Real Estate Ltd,