Homeguide Magazine - Victoria Edition

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EXCLUSIVE REAL ESTATE GUIDE | VICTORIA EDITION FREE

DIGITAL VERSION AVAILABLE FOR TABLET + SMARTPHONE DETAILS INSIDE

HOMEGUIDEMAG.COM

compliments of

:: TIPS FOR FIRST-TIME HOME BUYERS :: ARRANGING A MORTGAGE :: SELECTING A REPUTABLE RENOVATOR :: INCLUDES VICTORIA AREA MAP

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GUIDING YOU TO

YOUR NEW HOME

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4440 CHATTERTON WAY VICTORIA, BC (250) 598-2963

1845 FORT STREET VICTORIA, BC (250) 477-1100

YOUR TRUSTED

REALTORS®

866 GOLDSTREAM AVE VICTORIA, BC (250) 999-9886

When you enlist the help of an expert REALTOR®, you’re not just gaining support to buy or sell a house, you’re gaining an ally who’ll help you make the most out of your home.

103-4400 CHATTERTON WAY, VICTORIA, BC (250) 217-0364

Home buying can be a daunting and complex process but with a REALTOR® at your side, it doesn’t have to be.

Remember, a REALTOR® works for you and is

3194 DOUGLAS STREET VICTORIA, BC (250) 383-1500

there to look after your best interests. So take a few minutes and learn how a REALTOR® can help you find what you’re looking for.

REALTORS® can guide you through every step of the process, explain the current market, help

750 HILLSIDE AVE VICTORIA, BC (250) 978-9300

navigate complex paperwork and offer invaluable advice. When you’re ready to make a move, get a REALTOR®.

28 DREWRY AVENUE VICTORIA, BC (800) 668 0186

HOMEGUIDE MAGAZINE | 3

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CONTENTS 3 - Your Trusted Realtors® 5 - Welcome Home 6 - Victoria’s Preferred Vendors 7 - Looking to Buy a Home? Make Sure You’re Ready to Buy 10 - The Final Cost of Buying a Home 12 - Working With a Realtor® 14 - Tips for Buying Strata Properties 16 - Arranging a Mortgage 17 - Recognizing Potential Major Expenses in a New Home 18 - Victoria Area Map & Preferred Vendors 20 - Selecting a Reputable Renovator 21 - The Importance of Reading & Understanding an Offer 22 - How Long Does It Take to Find a New Home 23 - 5 Tips For Selling Your Home Quickly 24 - How to get Top Dollar for Your Home, Fast 26 - Tips for First-Time Homebuyers 28 - Making Sense of a Crazy Market 29 - Tips for Choosing a Contractor 30 - Home Purchase Cost Estimate 31 - Home Features Checklist 32 - Amortization Chart 33 - Monthly Homeowner Budget

Welcome Home One of the biggest purchases of your life is buying a home.

Wether you are a first time or repeat home buyer it can be an exciting, yet sometimes intimidating experience.

Buying a home is most probably the most important investment for you and your family. Finding the right house and best deal may prove to be a very challenging task.

The home you finally settle on and purchase will be by far the largest asset, and foundation upon which you can develop your personal worth.

Being an informed buyer allows you to be better prepared in the process of making such a significant yet worthwhile investment. Our aim is to help you with this journey.

This Exclusive Real Estate Guide is designed to educate and better prepare you when deciding to sell or buy a home.

Homeguide Magazine represents your leading local publication for up-to-date real estate tips and market trends and is proudly known as the go-to source for today’s homebuyer and seller.

Our mantra and mission statement is “GUIDING YOU TO YOUR NEW HOME” TM We take pride in the quality design and informative editorial that is helping our readers through the challenging, yet exciting journey of finding their piece of paradise.

HOMEGUIDE MAGAZINE | 5

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Window Fashions Ruffell & Brown Interiors

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LOOKING TO BUY A HOME? MAKE SURE YOU’RE READY TO BUY MAKE SURE YOU’RE READY TO BUY If you’re thinking of buying a home. you’ve come to the right place. This three-part series of articles will help you prepare for your adventure.

But before we jump right in, you have to make sure three things are ready: you, your bank account, and the real estate market.

ARE YOU READY? BE SURE. Few joys can match the pride of owning the roof over your head, but you will have to make some sacrifices. There’s the obvious financial responsibility, but your home will also require constant care. That’s what real pride of ownership is all about.

IS YOUR BANK ACCOUNT READY? CHECK IT TWICE. Your first home will be the biggest financial obligation you’ve ever faced. You should ideally have saved up some money for a down payment and are managing any debts like student loans or credit cards. Consult a REALTOR® or mortgage professional to determine what you can afford. That’ll help you narrow your search.

IS RIGHT NOW A GOOD TIME TO BUY? Markets go up, markets go down and even the smartest experts can’t accurately predict when a market will peak or bottom out. If you’re buying a home as a longterm investment (and for long-term enjoyment), you should be protected from short-term changes in the market.

Pick a home that meets the needs of you and your family. Then you’ll enjoy living in your investment as it grows in value.

GREAT TOOLS • Visit realtor.ca to view the latest home listings on whatever computer or device you’re using.

• Home listings app for your phone to give you convenient access to all the latest home listings.

• Find a REALTOR®: Benefit from the expertise of a professional who can find you the perfect home.

HOMEGUIDE MAGAZINE | 7

TM

SIMPLY SCAN THIS QR CODE TO VIEW THIS MAGAZINE ON YOUR TABLET OR SMARTPHONE Ideas and opinions expressed in this publication do not necessarily reflect the views of Royalmount Media Inc. or it’s affiliates; no official endorsement should be inferred. The publisher does not assume any responsibility for the contents of any advertisement and any and all representations or warranties made in such advertising are those of the advertiser and not of the publisher.

The content included in this publication (Homeguide Magazine) is provided solely for informational purposes. Although we at Royalmount Media Inc. try to offer the best and most accurate consumer information, we make no representations or warranties of any kind, express or implied, about the accuracy, reliability, completeness, or availability in regards to the information, services, products, or the graphics that accompany them in Homeguide Magazine for any purpose. Any reliance you invest in information found here is at your own risk alone.

No part of this magazine may be reproduced, in all or part, in any form – printed or electronic – without the express permission of the publisher.

The publisher cannot be held responsible for unsolicited manuscripts and photographs.

Efforts are made to ensure that the articles and information we publish are as accurate as possible at the time of publication, but no responsibility can be taken by the publisher for any errors or omissions contained herein. Any losses, damages or distress resulting from adherence to any information made available through this publication is not the responsibility of Homeguide Magazine or its publisher – Royalmount Media Inc. The opinions expressed are those of the authors and do not necessarily reflect the views of Homeguide Magazine, the editor or publisher. This particular issue of Homeguide Magazine is used solely as a prototype to show prospective clients the design, layout and format of its future issues.

Homeguide Magazine is published by:

Royalmount Media Inc. 8457 Newman - Suite 176 Lasalle, Qc H8N 0A2 Toll Free: 1.800.223.3413 Fax: 1.888.223.3402 info @royalmountmedia.com www.royalmountmedia.com Homeguide Magazine is delivered directly to subscribers

by Canada Post and also distributed through local Realtors®, neighbourhood dropboxes and various retail locations.

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THE FINAL COST OF BUYING A HOME The purchase price of your new home is the biggest cost you will come across in your home-buying venture, but it is not the only one. A REALTOR® can provide you with helpful advice about other costs involved, some of which may include the following: APPLICATION/MORTGAGE BROKER FEE Processing your mortgage application costs lenders money. Consumers may be charged a fee by a lender or mortgage broker for setting lip a mortgage when income or credit issues become more sensitive to the approval process.

APPRAISAL FEE The money you borrow for your mortgage is usually a percentage of the home’s purchase price, or of the market appraisal - whichever is lower. The lender will use someone on staff or an independent professional to make this appraisal. You are normally responsible for this cost.

LAND SURVEY FEE A plot plan or survey of the property you want to buy is important to establish exactly where the boundaries are and make sure there are no encroachments such as part of your neighbour’s house or garage sitting on your land. Your lending institution will want to see such a survey and can let you know what their requirements are.

INSURANCE If you are applying for a high-ratio mortgage - that is, if you are borrowing more than 80 per cent of your home’s purchase price - you will have to pay for mortgage insurance to protect the lender in the event that you fail to make the necessary payments. As your new home will be used as security for your mortgage; the lender will want you to have extended coverage and fire insurance.

Buying a home is a balance of many requirements such as family size, location, income and lifestyle.

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You may also wish to check out the cost of buying mortgage life insurance. This insurance ensures that the mortgage balance is paid off if you or a co-borrower dies.

LEGAL FEES These are the fees charged by a lawyer to help you complete the home-buying process. Disbursements are the costs involved in processes such as conducting a title search, drawing up the title deed and preparing and registering the mortgage.

PROPERTY TRANSFER TAX This is calculated on the property’s fair market value (usually the purchase price) at the rate of one percent up to $200,000 and two percent of the price over $200,000.

First-time buyers may be exempt from this tax subject to certain restrictions. Ask your REALTOR® for details.

HST When you buy a new home, the entire purchase price is taxable. You may, however, qualify for a partial provincial New Housing Rebate if you plan to live in the home yourself. Ask your REALTOR ® for details. A “used” residential home is normally exempt from the HST. Remember that HST is also applied to the REALTOR®’S commission and most other transaction fees such as legal and appraisal costs.

OTHER COSTS When you buy a home you will also want to budget for utility bills, annual property taxes and maintenance costs.

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WORKING WITH A REALTOR® Buying or selling a home is likely one of the largest business deals you will ever make. That’s why it’s important to carefully select the person who will help you get the most for your money or property – your REALTOR® – and to understand the different kinds of relationships you can have with a REALTOR®.

As licensed real estate professionals, REALTORS® subscribe to a high standard of service and a strict code of ethics. REALTORS® work within the legal relationship called agency. The agency relationship exists between you, the principal, and your agent, the company under which the individual REALTOR®, who is representing you, is licensed. The essence of the agency relationship is that the agent has the authority to represent the principal in dealings with others. To eliminate any confusion, particularly if you are a buyer, it is important to establish from the start the agency relationship that exists between you and the REALTOR® you select. These relationships may include:

Buying or selling a home is likely one of the largest business deals you will ever make.

SELLER’S AGENT When a REALTOR® is a seller’s agent, he or she must do their best for the seller of the property. The REALTOR® will provide the seller with a fair assessment of the property, prepare a listing agreement, develop a marketing plan and help separate the “lookers” from the “buyers.”

He or she will ensure that only serious offers are made.

BUYER’S AGENT When a REALTOR® is a buyers agent, he or she must do their best for the buyer. A written contract establishing this relationship will explain the services to be provided and spell out if any special fees will be paid. It will also specify what obligations a buyer may have, such as working with the REALTOR® for a specified period of time.

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LIMITED DUAL AGENT Occasionally, a REALTOR® will act as the agent for both the buyer and seller. Since the REALTOR® has promised a duty of confidentiality, loyalty and full disclosure to both parties at the same time, it is necessary to limit these duties in this situation if both parties agree. If you find yourself involved in a dual agency relationship, before making or receiving an offer both you and the other party will be asked to consent in writing to this new, limited agency relationship. The REALTOR® will explain fully what kind of information he or she can and cannot disclose to the other party.

The REALTOR® you select should be someone who cares about your needs...

NO AGENCY You may also choose to use the services of a REALTOR® without having any kind of agency relationship.

This might occur, for example, when the seller’s agent is showing you the property. The REALTOR® you choose to work with in this situation has a legal and ethical duty to provide you with accurate and honest answers to your questions and can assist you in your search for a home. A REALTOR® who is not your agent cannot, however, recommend or suggest a price, negotiate on your behalf, inform you of his or her principal’s bottom line or disclose any confidential information about his or her principal.

Understanding your relationship with a REALTOR® is the first step in ensuring your real estate transaction is the best one you can make. The REALTOR® you select should be someone who cares about your needs and has the experience to provide you with sound, effective advice and professional service.

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TIPS FOR BUYING STRATA PROPERTIES If you are thinking about buying a condominium apartment you are no doubt concerned about the problems some condominium owners face with moisture leaks. Although not all condominiums are affected, the Victoria Real Estate Board encourages buyers to work with their REALTOR® in conducting a cautious and thorough investigation of any property before deciding whether to buy.

It’s important to remember that any kind of property has the potential to have problems, such as moisture leaks, that are not immediately evident when the property is first viewed. The VREB, in co-operation with the BC Real Estate Association, has introduced a specialty form for condominiums called the Strata Property Disclosure Statement, which is completed by the seller.

Remember also that REALTORS® are bound by a strict code of ethics and have a duty to disclose to buyers information they know about a property.

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BEFORE BUYING A STRATA PROPERTY, THE VREB RECOMMENDS BUYERS DO THE FOLLOWING: • Work with a REALTOR® to obtain both the minutes of the Strata Council (if applicable) and minutes from the annual general meetings for at least the past two years along with the Strata by-laws, financial statements, any engineering reports that maybe underway or previously conducted and other relevant information that your REALTOR® recommends.

• Allow sufficient time to consult with an accredited professional who will inspect a building before any decision to buy is finalized.

• Ask to see the Property Disclosure Statements (PDS).

• Investigate the warranty program (if applicable) and the limits and responsibilities of the home owner.

• Consult with the municipality and other professionals regarding building location and performance.

• If possible, investigate the background of the developers and/or builders of the building.

WHEN REVIEWING STRATA COUNCIL MINUTES, LOOK FOR: • Any past problems and special expenditures or reports.

• A written maintenance program or plan.

• Healthy contingency funds.

• Upcoming large expenditures.

• A well-maintained and managed building.

With careful examination of all relevant information and the help of a REALTOR®, there are many attractive buying opportunities in the housing market today, including condominiums.

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ARRANGING A MORTGAGE Now is a great time to consider buying a home. Interest rates are very attractive and there is a wide choice of homes available to suit various budgets. Still, it’s most likely you will have to deal with financing and this will mean taking on a mortgage.

Sorting through the numerous mortgage options available to today’s homebuyers can be intimidating, but professional help is readily available. Your REALTOR® can offer you invaluable information along with your financial institutions mortgage specialist and other advisors.

Banks and trust companies lead the pack, but credit unions, mortgage companies and private lenders also offer funds. There is also the option of consulting a mortgage broker.

DIFFERENT MORTGAGES A number of different mortgage options are available.

Under a conventional mortgage, lenders will loan you up to 80% of the appraised value or purchase price of the property(whichever is lower) to a maximum set by government regulation and you must come up with the remaining 20% yourself.

If you don’t have the 20% down payment, I high ratio mortgage may be available that could provide most of the required funds. The proviso is that high-ratio mortgages must be insured and the cost falls to you. Check with your lending institution or mortgage broker to see whether you would be eligible for such a mortgage.

Variable-rate mortgages are usually offered for both conventional and high ratio mortgages. If interest rates climb, you may be paying more per month in interest; if rates drop, you may be paying more off your principal.

Fixed-rate mortgages, on the other hand, maintain the same rate of interest over the entire negotiated term.

OTHER TERMS There are some other concepts to bear in mind. Amortization refers to the time period in which the mortgage is assumed to be paid. A common amortization period is 25 years. This means interest and principal are set as if you were paying the amount borrowed over a 25 year payment schedule. Obviously, the shorter the amortization period the less interest you will pay.

Prepayment privileges are very important for borrowers to consider. These allow you to pay money against the principal, reducing the total amount of interest you will ultimately pay.

Buying or selling a home need not be a daunting task.

Your REALTOR® can provide you with invaluable information.

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RECOGNIZING POTENTIAL MAJOR EXPENSES IN A NEW HOME When you see a new home you like on the market, it’s easy to get distracted by all the features you love – the wraparound backyard deck or the spacious rec room with plenty of space for entertaining. You just need to make sure that in all that excitement you don’t overlook any expensive maintenance issues that could be just around the corner.

Nothing lasts forever. The major components of every home – from the furnace to the roof shingles – need to be replaced eventually. Knowing when such maintenance issues are likely to arise can help you make a smarter decision about the home you’re considering.

How do you do that? When viewing a property, ask for the age of the major components of the home, such as the roof shingles, furnace, air conditioner, water heater, and appliances. Roof shingles may look merely weathered in spots – and you might think they have years of service left – when, in fact, they’re due to be replaced in a year.

Also pay close attention to the backyard deck, fencing, flooring, and windows. Do any of those components look aged, worn, and in need of repair or replacement sometime soon?

Finally, don’t forget to check the kitchen and bathrooms.

Sinks, faucets, bathtubs, showers, and cabinetry have a life-span of about 10-15 years.

Of course, there are things you can’t see, such as wiring, plumbing, venting, and other components of a property that may require maintenance soon. That’s why it’s so important to make any offer to purchase a home conditional on passing an inspection by a qualified home inspector.

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DOWNTOWN VICTORIA & AREA HOMEGUIDE MAGAZINE | 19

SELECTING A REPUTABLE RENOVATOR Have you seen the television show where the host – an experienced contractor – comes to a home to fix a bad renovation? Episodes typically feature leaking bathroom showers, fallen decks, creaky flooring, and other examples of shoddy workmanship.

For the homeowners, it’s a nightmare. That’s why it’s so important to select a reputable renovator – one who has the experience and track record to do the job right. How do you do that?

HERE ARE A FEW TIPS: • Make sure the contractor can give you the full name, address and phone number of his company. If he only has a truck and a cell phone, that’s a red flag.

• Ask him to provide you with the names of at least three customers he’s done work for in the area. (Then phone those references!)

• Some specialty contractors, such as kitchen and bath renovators, are certified or licensed by a professional trade association. Ask the contractor for credentials.

• Beware of contractors who offer you a lower price if you pay cash. They’re probably trying to avoid taxes, which suggests that they’re not entirely honest.

• Make sure the renovator has experience with your specific type of project.

• Search for the company on Google.com. If there are any customer complaints online, you’ll find them in the search results.

• Don’t hire the first contractor you meet, regardless of how impressed you are. Speak to at least three. Ask lots of questions. Take your time. Finally, use your common sense. If you don’t have a good feeling about the contractor or if they don’t give you clear answers to basic questions about pricing, schedule, and warranty, then move on.

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THE IMPORTANCE OF READING AND UNDERSTANDING AN OFFER When you make or receive an offer to buy a property, it’s important that you read and understand every clause. It is especially important to understand any conditions or any changes that are made to the standard offer.

An offer may contain several types of conditions. The most common are “conditional upon arranging financing” and “conditional upon passing a professional home inspection.” However, there may be other conditions as well.

You should be aware of – and fully understand – all of them. In addition, the wording of an offer may change during the back and forth negotiations that often happen. Aside from changes to the price, other clauses may be added, removed or reworded as well.

A good agent will always ask you to initial changes. This is done primarily to ensure you know and approve of what you’re signing.

A recent newspaper article tells the story of a buyerseller legal dispute that resulted in a six-figure judgement against the seller. This was due in part, to a lack of understanding of one of the clauses in the agreement.

You don’t want that to happen to you. Take the time to carefully review and understand an offer.

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HOW LONG DOES IT TAKE TO FIND A NEW HOME? If you’re planning to look for a new home sometime in the future, you may be wondering how long the process will take. How much time should you set aside for viewings? How many of the listed homes should you see?

Of course, the process varies from person to person.

According to the Department of Housing & Urban Development, home buyers view an average of 15 properties before finally choosing to make an offer on one of them. That number may be a good benchmark for you.

On a Saturday afternoon, you can comfortably look at three or four potential properties. You can see more if you want to make a full day of it. One factor that impacts the home shopping process is how clearly you know what you’re looking for.

For example, if you’re certain you want a three bedroom backsplit, backing onto a wooded area or ravine, in an upscale neighbourhood, then the process is going to be fairly simple. You’re just going to view properties that closely meet that criteria.

But if you’re the kind of person who simply says, “I’ll know it when I see it”, then you’ll need to look at several homes on the market. That means carving out plenty of room in your schedule for viewings.

A good REALTOR ® can help you understand what’s available on the market and which homes are worth seeing. He or she can also help you determine how long the process will likely take, and show you ways to make the process go more quickly and smoothly.

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5 TIPS FOR SELLING YOUR HOME QUICKLY There are several reasons why you may need to sell your home quickly. For example, a job change may require a speedy relocation to another city, or you may have purchased another property and don’t want to be stuck too long with two mortgages. Here are some tips that can help get the sold sign on your front lawn sooner.

• Be realistic with price. If you set the listing price higher than the current market value of your home, then you’re not going to get many, if any, viewers. You want the list price to be attractive, which means listing at the current market value.

• Get things fixed. You probably don’t have time for a major renovation. So just make sure everything in your home is in good working order. Deal with any obvious maintenance issues, such as a leaking faucet or a gate hanging precariously on one hinge.

• Ensure your home shows well, inside and outside.

Eliminate clutter. Trim hedges. Make sure every room has adequate lighting, especially the basement.

Imagine that a special guest is visiting your home, then clean up and prepare accordingly.

• Be flexible with viewing times. You want as many potential buyers as possible to see your home.

So don’t restrict viewing times to just Saturdays.

Make sure your home is as “available” as possible for showings. This may cause you and your family some inconvenience, but the reward will be selling your property sooner.

• Work with a good REALTOR®. Find an agent who understands the area and the local market well.

He or she will be able to recommend a variety of strategies that will help sell your home faster, and for a good price.

• Of course, there’s no way to guarantee that you’ll sell your home within the time frame you want.

But these tips will certainly increase the chances that you will.

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HOW TO GET TOP DOLLAR FOR YOUR HOME, FAST! Your home is likely your largest asset, so selling it may be the biggest financial move you’ve ever made, one that requires significant thought and strategy. However, once you’ve entered the market, the process may move very quickly: your property has the best chance to sell within its first seven weeks on the market.

Studies indicate that the longer a property stays on the market, the less it will ultimately sell for. So, you need to ensure you’re ahead of the game. Get your property into top selling shape before it hits the market in order to increase its chances of selling within the desired window of time and drawing top dollar.

Use the following tips to seize control of the home-selling process before you begin:

ESTABLISH THE REASONS YOU WANT TO SELL YOUR HOME: These reasons will direct the path you take in the homeselling process. If, for example, you have already purchased a new home and your goal is to make a quick sale on your current home, this reason will chart your approach. If, on the other hand, you aim to net the highest price possible for your home, you would need to prepare yourself for a potentially slower process. Be clear about these reasons, as they will directly influence the amount of time and effort you put into preparing your home for sale, and the amount you set for your asking price.

PRICING: It is essential you list your property at a competitive market value right from the start. The competitive nature of the market means that over-pricing by a few thousand dollars could make the difference between your home selling quickly or not selling at all. Overpricing your home could potentially yield the following results: minimized offers, fewer showings, fewer agent responses, limited financing, limited buyers qualified for your type of home, or a smaller net price. You can avoid these outcomes by setting the price of your home at its market value when you first list. If you are unsatisfied with the current market value of your home and unwilling to list it as such, consider putting off the sale of your home at this time.

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DO YOUR HOMEWORK: Perhaps the most “hands-on” approach to educating yourself about the nature of the current market—what works and what doesn’t—is to explore other homes on the market. Take advantage of Open Houses in your area, particularly in those homes similar to your own.

Take some notes. Observe floor plans, lot size, appearance, location, and other features of the property. Then compare asking prices. Go through this process before setting your own asking price.

DECIDE WHETHER TO INVEST IN AN APPRAISAL: Getting an appraisal can be a positive or negative move, depending on the outcome. It’s up to you to determine how it might fit into your personal plan. Having an appraisal done can be a good marketing strategy, indicating to potential buyers that your home can be financed, which will increase the chances that your home will sell quickly and for more money. On the other hand, however, there’s no guarantee you’ll like the final picture offered by the appraisal. Also, it’s one more cost you’ll have to add to your budget, and an appraisal only lasts for a limited period of time.

CHOOSING A REALTOR:

ACCESS TO YOUR HOME:

Your choice of Realtor will greatly influence your homeselling experience. For better or for worse, this person will be with you every step of the way during one of the largest financial ventures of your life—and will make a difference in the speed with which your house is sold, and how much it sells for. Don’t take this relationship lightly. You should consider a few Realtors before you narrow down your choice. Of course, one of the initial factors to consider will be whether the Realtor’s personality and enthusiasm is a fit for you and your family. Also, each candidate should be able to provide you with information on the following areas: the length of time s/he has been involved in residential real estate in your area, the marketing strategy s/he would use to sell your home, details on other properties in your area their company has sold (how much the property sold for and how long it spent on the market), and his/her philosophy or method of negotiation. You might want to request a reference list of former clients as well. Choose a few names on the list and call them.

Agents will be more reluctant to show your home if it isn’t readily accessible. They don’t want to waste their time running around, picking up and dropping off keys.

Rather, a key should be immediately available for agents at all times. Also, go through the following last-minute list to prepare for showing your home: keep all lights on, doors unlocked, and drapes and shutters open. If you can, leave the house while it is being shown. Head to the local coffee shop, or take the kids to the park. Prospective Buyers will feel more intrusive if the owner of the house is present while they are viewing. If you can’t leave the house, be as unassuming as possible.

CLEANLINESS Make no mistake, prospective Buyers will be turned off by even a minimal lack of cleanliness, or an odour.

Sellers may lose thousands of dollars if they fail to thoroughly clean the house before they begin to show it.

Begin by clearing the house of excess junk, clutter, and furniture. Create more space. Make every room sparkle. Eliminate odours. You may be the last to notice a peculiar odour in your house, but it may be the first thing a potential Buyer notices. So, air out your house prior to showing. Keep pets in the yard as much as possible, and send any household smokers outside.

UPDATED INTERIOR: A fresh coat of paint may be one of your best investments when preparing your home for the market. New paint can take years off the appearance of your home, dramatically increasing its perceived value. Likewise, if your carpeting appears worn, old, or is an outdated pattern, consider replacing it. The carpet or paint in one room could be the difference between a successful sale and your home being overlooked.

DRIVE-UP APPEAL: If the buyer doesn’t like the outside of your house, s/ he may choose to skip it entirely. It is essential that your home possess a certain “drive-up appeal.”

Remember, a potential buyer’s first impression of your house is formed while s/ he is still sitting in the realtor’s car. Ensure the trees are trimmed, the walkway swept, the lawn cut. Paint the door, and put out a new, plush door mat. All of these little things will contribute to the overall effect of a well cared-for and welcoming home.

HOMEGUIDE MAGAZINE | 25

TIPS FOR FIRST-TIME HOME BUYERS Are you among the thousands of people in Greater Victoria who pay rent each month, knowing full well that you will never see that money again? For many, this need not be the case. Instead, why not take that money and build it into an investment that can last a lifetime? Right now there are excellent opportunities for first-time buyers. Mortgage rates are attractive and there are plenty of reasonably priced homes on the market.

WHAT KIND OF HOME DO YOU NEED AND WANT? Buying a home is a balance of many requirements such as family size, location, income and lifestyle.

REALTORS® are excellent sources of advice and help in these matters. Not only do they have the experience and knowledge to make sure the choice you make will be the right one, but with access to the Multiple Listing Service (MLS), they can seek out suitable properties for you and provide you with a customized list of homes that meet your needs, wants and budget.

Buying a home is a balance of many requirements such as family size, location, income and lifestyle.

Ask yourself exactly what you need in a home. How many bedrooms? How close to schools or shopping centres?

Do you plan to have more children? Do you need a garage or a finished basement? New homes offer extensive warranties and pristine conditions but may not have mature trees or landscaping. Older homes often include improvements such as finished basements or rec rooms, decks and patios. Be sure to have any resale home inspected for needed repairs or upgrading. Next decide on a preferred location. Living in the city means you will be close to amenities such as theatres and shopping. If you prefer a more rural lifestyle, make sure the extra time spent driving each day won’t detract from your enjoyment of the property.

26 | HOMEGUIDE MAGAZINE

Town-homes and condominiums are obviously suited to particular lifestyles or budgets. Town-home or condominium living offers convenience and often means sharing common areas such as parking, hallways and landscaping.

WHAT CAN YOU AFFORD? Once you have determined what it is you want and need, you’ll have to find out what you can afford. The first tip is to set a maximum price range instead of just an upper price. It’s not always wise to buy the most expensive home you can afford but better to aim lower in anticipation of extra costs or fluctuations in your income.

It’s not always wise to buy the most expensive home you can afford A REALTOR® or your financial institution can help you determine the amount of the mortgage you can carry by calculating your debt-service ratio. The rule of thumb is that the sum of all your current loan payments (car, personal, credit card, etc.) plus your mortgage should not exceed 40 per cent of your gross income. In addition, mortgage payments and property taxes should not be more than 30 per cent of gross income. Buying your first home may seem intimidating in the beginning, but with careful planning, a clear idea of what you want and the help of a REALTOR® , home ownership can be become a joyful reality for you and your family.

HOMEGUIDE MAGAZINE | 27

MAKING SENSE OF A CRAZY MARKET Unless you’re a real estate expert, you probably look at the market and think things are pretty confusing. Even a bit crazy! You hear news about “bubbles bursting”, “higher or lower home sales in a particular month”, “new home starts” that are up or down, and on and on it goes.

It’s a lot of news and a lot of jargon.

If you’re thinking of selling your home within the next year or two, you will want to understand what’s happening in the market so you can make the right decisions and get a clear sense of what to expect. So, how do you make sense of it all?

That’s where a good REALTOR® can help. Even if you don’t have any definite plans to move in the near future, a REALTOR® who is an expert in the local marketplace can help you understand what homes in a particular neighbourhood are selling for, and what you can expect to get should you decide to list your property. Getting to know a REALTOR® also means you’ll have a trusted expert to talk to from time to time, when you have real estate-related questions. You’ll have someone you can think of as “Your REALTOR®”.

Plus, when the time comes to sell your property, you won’t have to deal with a stranger. Instead, you’ll be able to work with a REALTOR® that you know well – and who knows YOU. Overall, that will make the buying and selling process go more smoothly and more successfully.

28 | HOMEGUIDE MAGAZINE

TIPS FOR CHOOSING A CONTRACTOR What do you do if you don’t know how to choose a contractor or if you’ve never chosen one before previously?

Investing in professional services is one of the best ways to ensure that you get credible and reliable results. However, if you invest in a low quality contractor, you’re going to get low quality work and results. Here’s some suggestions to help you out with making that important choice.

LEARN ABOUT WHO YOU SHOULD HIRE It’s never a good idea to just pick a contractor out of the yellow pages and hope that you get good results.

You want to ensure that you’re hiring someone who is well-known for providing quality work and great results.

You can check out the internet for a few reviews, but you might not be lucky enough to find the information that you are searching for. Instead, try asking around by contacting some friends or family that you know have recently had remodeling done. They may be able to recommend some options to you that are worth trying.

ASK QUESTIONS It doesn’t matter who you are hiring, it’s always a good idea to ask questions. Even if they produce great work, you should always ask questions. Learn about their experience, how long they’ve been contracting, how much work they’ve done in the past. Ask them questions about how they are going to handle your remodeling project and ask them if they’ve ever done projects like that before. Do they have any pictures or references that they can provide you with which will ensure that you are getting high quality work?

COMPARE PRICES Just because the contractor says that they provide the best quality work in your city, it doesn’t mean that they have to charge you an outrageous price for everything that they’re going to do during the project. Don’t forget to check prices with other contractors and try to find something that’s affordable but still provides you with the results that you’re aiming for. It doesn’t have to automatically be incredibly expensive in order to ensure that you get reliable work.

RESOURCES Above anything, ask about where your contractor will be getting their resources from. Are they going to be getting their materials from the home improvement store that’s known for good quality or do they have some other source that provides them with cheaper materials? Will they expect you to provide them with materials instead?

This is very important because the quality of the materials is going to determine how well your results turn out in terms of appearance and aesthetics.

HOMEGUIDE MAGAZINE | 29

Home Purchase Cost Estimate The purchase price is the biggest expense in buying a home. But there are many other costs you must be prepared to pay as well. Fill in this worksheet to calculate how much your home will really cost.

Cost of the Home Purchase price

$

+ GST (newly built homes only)

$

Total cost of the home

$

The purchase price is the biggest expense in buying a home. But there are many other costs you must be prepared to pay as well. Fill in this worksheet to calculate how much your home will really cost.

HOME PURCHASE COST ESTIMATE

Up-Front Costs

4

Appraisal fee (if applicable)

$

Deposit (to be paid when you sign the Offer to Purchase)

$

Down payment

$

Estoppel certificate fee (for condominium/strata unit)

$

Home inspection fee

$

Land registration fee

$

Legal fees and disbursements

$

Mortgage broker's fee (if applicable)

$

Mortgage loan insurance premium (can be included in your mortgage)

$

Adjustment for prepaid property taxes and/or utility bills

$

Property insurance

$

Survey or Certificate of Location fee

$ Homebuyers HomebuyersChecklist Checklist— — AANewcomers’ Newcomers’ Guide Guideand andWorkbook Workbook

Title insurance

$

Other up-front costs

$

Total up-front costs

$

Other OtherCosts Costs New Newappliances appliances

$$

Gardening Gardeningequipment equipment

$$

Equipment Equipmentfor forclearing clearingsnow snow

$$

Window Windowcoverings coverings(curtains, (curtains,blinds, blinds,etc) etc)

$$

Decorations Decorations

$$

Hand Handtools tools

$$

Dehumidifier Dehumidifier Canada Mortgage and Housing Corporation

30 | HOMEGUIDE MAGAZINE

$$

Moving Movingexpenses expenses

$$

Renovations Renovationsororrepairs repairs

$$

Fees Feestotoset setup uputilities utilitiesand andother otherservices services

$$

Condominium Condominiumfees fees

$$

Total Totalother othercosts costs

$$

Total Totalcosts costs(cost (costof ofhome home++up-front up-frontcosts costs++other othercosts): costs):

$$

Home Features Checklist Before you start looking for a home, make a list of all the features you and your family want or need. Every time you visit a home, fill in the following checklist by putting a check mark (✓) beside the chosen feature. Compare each home you visit to the list of features you are looking for, to find out which one best meets your needs.

Home Features Checklist Is the home new or resale?

Resale

New

What kind of home is it?

Detached

Semi-detached

Townhouse

Duplex

High-rise

Low-rise

Freehold # years:

How large is the lot?

Small

Medium

Is it on a quiet street?

Yes

No

What theeat-in exterior finish?

Is thereis an kitchen?

Brick Yes

Aluminum siding No

A separate dining room?

Wood Yes

Vinyl Nosiding

A separate family room?

Combination brick and siding Yes No

What is theorfoundation made of?

A fireplace woodstove?

Concrete block Yes

Concrete No

Preserved Wood

A spare room for an office?

How many bedrooms are there?

1Yes

2

3 No

4+

Does the basement have enough space How many bathrooms? for storage or a workshop?

How is the home heated?

Is there a deck or patio?

1Yes

2

No 3+

Oil No Wood No Homebuyers Checklist — AANewcomers’ Newcomers’Guide Guideand andWorkbook Workbook Homebuyers Checklist — Window Carport Neither No No

Yes Yes

No No

A separate family room?

Yes Yes

Your work Yes Yes

Public transportation Yes Yes

No No

Your spouse’s work No No

Schools No No

A fireplace or woodstove?

Shopping Yes Yes

Parks/playgrounds No No

A spare room for an office?

Recreational facilities Yes Yes

Restaurants No No

Does the basement have enough space space for storage or a workshop?

Place Yes Yesof worship

Veterinarian No No

Police station

Fire station

A private driveway?

Yes Yes Hospital

Yes Yes

No No Doctor/dentist

No No

A garage or carport?

Garage Garage

Carport Carport

Does the home have a security system? system?

Yes Yes

No No

Is the home accessible (for seniors seniors or or people with a disability)?

Yes Yes

No No

How close is the home (in kms) to: to:

Your Your work work

Your Yourspouse’s spouse’swork work

Public Public transportation transportation

Schools Schools

Shopping Shopping

Parks/playgrounds Parks/playgrounds

Canada Mortgage and Housing Corporation

Is there a deck or patio?

Before you start looking for a home, make a list of all the features you and your family want or need. Every time you visit a home, fill in the following checklist by putting a check mark (✓) beside the chosen feature. Compare each home you visit to the list of features you are looking for, to find out which one best meets your needs.

there a bathroom on(for the seniors groundor floor?

Is the home accessible people with a disability)?

Is there an eat-in kitchen?

How close is the home (in kms) to: A separate dining room?

Gas Yes Electric Yes Central Garage Yes Yes

Large

HOME FEATURES CHECKLIST

How old is the home?

A private driveway?

Does it have air conditioning?

A garage or carport?

Does the master bedroom have its Does the home have a security system? own bathroom?

6

Condominium Homebuyers Checklist — A Newcomers’ Guide and Workbook

Neither Neither

HOMEGUIDE MAGAZINE | 31

AMORTIZATION CHART AMORTIZATION CHART MONTHLY PAYMENT PER $1,000 OF MORTGAGE

AMORTIZATIONMONTHLY PAYMENT PER $1,000 OF MORTGAGE CHART Estimating your monthly payment, LENGTH LENGTH OF OF MORTGAGE MORTGAGE

RATE OF INTEREST RATE OF 1 INTEREST

LENGTH OF MORTGAG

1 3OF MORTGAGE 5 10 15 20 25 LENGTH YEAR YEARS YE ARS YE ARS YEARS YEARS YEARS 3 5 10 15 20 25 3.00% $84.69 $29.08 $17.97 $9.65 $6.90 $5.54 YEAR YEARS YEARS YEARS YEARS YEARS YEARS $4.74

AMORTIZATION CHART

MONTHLY PAYMENT PER $1,000 OF MORTGAGE $18.08 $9.77 $7.02 $5.67 $4.87

3.25% $84.69 $84.80 $29.08 $29.19 $17.97 3.50% $84.92 $29.30 3.25% $84.80 $29.19 $18.08 LENGTH OF MORTGAGE 3.50% 3.75% $84.92 $85.03 $29.30 $29.41 $18.19 3 5 10 15 20 4.00% $85.14 $29.51 3.75% $85.03 $29.41 $18.30 3.00%

$9.65 $18.19 $9.77

$6.90 $9.88 $7.02

$5.54 $7.14 $5.67

$4.74 $5.79 $4.87

find the figure under interest RATE OF the mortgage 1LENGTH 3OF MORTGAGE 5 10 Rate (%) INTER that corresponds to the YEARS number YEARS YEARS EST YEAR RATE OF 1 3 5 10 15 of years you want to pay $86.71 off the loan.

7.50% $31.06 $19.99 $11.82 INTEREST YEAR YEARS YEARS YEARS YEARS

7.50% 7.75% $86.71 $86.82 $31.06 $31.16 $19.99 $20.10 $11.82 $11.94 $9.2

For examples: 8.00% $86.93 $31.28 $20.22 $12.07 $5.00 7.75% $86.82 $31.16 $20.10 $11.94 $9.3 LENGTH OF MORTGAGE If your interest rate is 10%$87.05 $31.39 $20.33 $12.20 $18.30 $9.88 $10.00 $7.14 $7.26 $5.79 $5.92 $5.00 $5.13 8.00% 8.25% $86.93 $31.28 $20.22 $12.07 $9.4 1 25 RATE OF 1 3 the term 5 of the mortgage 10 15 20 25 and is 25 $31.50 years, $18.41 $10.11 $7.39 $6.05 8.50% $87.16 $20.45 $12.33 $5.27 $5.92INTER$5.13 8.25% $87.05 $31.39 $20.33 YEAR YEARS YEARS YEARS YEARS YEARS $10.00 YEARS $7.26 EST YEAR YEARS YEARS YEARS $12.20 YEARS $9.6 Then you need toYEARS pay $8.95YEARS Per month MONTHLY PAYMENT PER $1,000 OF MORTGAGE 4.25% $85.25 $49.62 $18.52 $10.23 $7.51 $6.18 8.75% $87.27 $31.62 $20.57 $12.45 $5.40 $6.05 $5.27 8.50% $87.16 $84.69 $29.08 4.00% $17.97 $85.14 $9.65 $29.51 $6.90 $18.41 $5.54 $10.11 $4.74 $7.39 7.50% $86.71 $31.06 $19.99 of $11.82 $31.50 $9.21 $20.45 $7.99 $12.33 $7.32 $9.7 for each $1,000 mortgage.

4.50% $85.36 $29.73 $18.63 $10.35 $7.63 9.00% $87.38 $31.73 $20.68 $12.58 $5.54 $6.18 $6.31 $5.40 8.75% $87.27 $84.80 $29.19 4.25% $18.08 $85.25 $9.77 $49.62 $7.02 $18.52 $5.67 $10.23 $4.87 $7.51 7.75% $86.82 $31.16 $20.10 $11.94 $31.62 $9.34 $20.57 $8.13 $12.45 $7.47 $9.9 Your monthly payment: MORTGAGE LENGTH OF MORTGAGE 4.75% $85.48 $29.84 $18.74 $10.47 $7.76 $6.44 9.25% $87.49 $31.84 $20.80 $12.71 $5.68 $6.31 $5.54 9.00% $84.92 $29.30 4.50% $18.19 $85.36 $9.88 $29.73 $7.14 $18.63 $5.79 $10.35 $5.00 $7.63 8.00% $86.93 $31.28 $20.22 $87.38 $12.07 $31.73 $9.49 $20.68 $8.29 $12.58 $7.64 $10.0 $8.95 X (mortgage amount/$1,000) 10 15 4.75%20 5.00% 25 RATE OF 1 3 5 10 15 20 25 $18.85 $10.59 $20.92 $12.84 $85.48 $85.59 $29.84 $29.95 $18.74 $10.47 $7.76 $7.89 $6.44 $6.58 $5.68 $5.82 9.25% 9.50% $87.49 $87.60 $31.84 $31.95 $20.80 $85.03 $5.92INTER $5.13 $8.44 $12.71 $7.80 $10.1 =YEARS monthly$20.33 payment$12.20 YEARS $29.41 YEARS $18.30 YEARS $10.00 YEARS $7.26 EST YEAR YEARS 8.25% YEARS $87.05 YEARS $31.39 YEARS YEARS $9.63

AMORTIZATION CHART

5$85.59 25% $85 .70 $30 .06 $18 .97 $10$7.89 .71 $8$6.58 .01 $6$5.82 .71 $5 96 $5.96 75% $87 .72 $32 .06 $21.04 $21 04 $12 .98 5.00% 5.25% $29.95 $18.85 9.50% 9.$87.60 $31.95 $20.92 $6.05 $10.59 $5.27 $8.59 $12.84 $7.96 $10.3 7 $85.14 $9.65 $29.51 $6.90 $18.41 $5.54 $10.11 $4.74 $7.39 7.50% $86.71 $31.06 8.50% $19.99 $87.16 $11.82 $31.50 $9.21 $20.45 $7.99 $12.33 $7.32 $9.77 55.25% 25% 5.50% $85.70 $85.81 $30.06 $30.17 $18.$6.18 97 $19.08 $10.$5.40 71 $10.83 $8.01 $8.14 $6.71 $6.85 $5 96 $6.11 $5.96 9.75% 10.00% $87.72 $87.83 $32.06 $32.18 $21 $8.74 $21.04 04 $21.15 $12.$8.12 98 $13.11 $10.4 Calculating: 8 $85.25 $9.77 $49.62 $7.02 $18.52 $5.67 $10.23 $4.87 $7.51 7.75% $86.82 $31.16 8.75% $20.10 $87.27 $11.94 $31.62 $9.34 $20.57 $8.13 $12.45 $7.47 $9.91 $6.26 5.75% $85.93 $30.28 $19.19 $10.95 $8.27 $6.99 10.25% $87.94 $32.29 $21.27 $13.24 5.50% $85.81 $30.17 $19.08 $10.83 $8.14 $6.85 10.00% $87.83 $32.18 $21.15 $13.11 $10.6 $6.11 If your mortgage amount is $30,000, $6.31 $5.54 $20.68 $12.58 $10.05 $8.90 $8.28 9 $85.36 $9.88 $29.73 $7.14 $18.63 $5.79 $10.35 $5.00 $7.63 8.00% $86.93 $31.28 9.00% $20.22 $87.38 $12.07 $31.73 $9.49 $8.29 $7.64 $6.40 6.00% $86.04 $30.39 $19.30 $11.07 $8.40 $7.13 10.50% $88.05 $32.40 $21.39 $13.37 5.75% $85.93 $30.28 $19.19 $10.95 $8.27 $6.99 10.25% $87.94 $32.29 $21.27 $13.24 $6.26 your$9.63 monthly payment =$7.80 $10.19 $6.44 $5.68 $20.80 $12.71 $9.05 $8.45 $10.7 0 $85.48 $10.00 $29.84 $7.26 $18.74 $5.92 $10.47 $5.13 $7.76 8.25% $87.05 $31.39 9.25% $20.33 $87.49 $12.20 $31.84 $8.44 $19.41 $11.19 10.75% $21.51 $13.51 6.00% 6.25% $86.04 $86.14 $30.39 $30.50 $19.30 $8.40 $8.53 $7.13 $7.26 10.50% $88.05 $88.16 $21.39 $6.40 $6.55 MENT PER $1,000 OF MORTGAGE $8.95 X ($30,000/$1000) =$32.40 $268.50$32.52 $5.82 $6.58 $11.07 $9.21 $13.37 $8.62 $10.9 1 $85.59 $10.11 $29.95 $7.39 $18.85 $6.05 $10.59 $5.27 $7.89 8.50% $87.16 $31.50 9.50% $20.45 $87.60 $12.33 $31.95 $9.77 $20.92 $8.59 $12.84 $7.96 $10.34 6.50% $86.26 $30.61 $19.53 $11.32 $8.67 $7.41 $6.70 11.00% $88.27 $32.63 $21.63 $13.64 6.25% $86.14 $30.50 $19.41 $11.19 $8.53 $7.26 10.75% $88.16 $32.52 $21.51 $13.51 $6.55 .70 $30.$7.51 06 $18.$6.18 97 $10.$5.40 71 $8.01 $6.71 $58.75% $5.96 96 .72 $32.$9.91 06 $21.04 $21 $8.74 04 $12.$8.12 98 $10.48 $9.36 $8.78 $11.0 2 $85$10.23 $87.27 $31.62 9.75% $20.57 $87$12.45 $6.85 6.75% $86.37 $30.72 $19.64 $11.43 $8.80 $7.55 11.25% $88.38 $32.75 $21.74 $13.78 6.50% $86.26 $30.61 $19.53 $11.32 $8.67 $7.41 11.00% $88.27 $32.63 $21.63 $6.70 MORTGAGE $6.85 OF $21.15 $9.52 $13.64 $8.95 $11.2 $6.11 3 $85.81 $10.35 $30.17 $7.63 $19.08 $6.31 $10.83 $5.54 $8.14LENGTH 9.00% $87.38 $31.73 10.00% $20.68 $87.83 $12.58 $32.18 $10.05 SALARY $8.90 $13.11 $8.28 $10.63 MONTHLY 7.00% $86.49 $30.84 $19.76 $11.56 $8.94 $7.70 $7.01 6.75% $86.37 $30.72 $19.64 $11.43 $8.80 $7.55 11.25% $88.38 $32.75 $21.74 $13.78 $6.85 5 RATE OF$10.95 1 $8.27 3 $6.99 5 $6.2610 15 20 25 $13.24 $9.68 $9.12 $11.3 4 $85.93 $10.47 $30.28 $7.76 $19.19 $6.44 $5.68 9.25% $87.49 $31.84 10.25% $20.80 $87.94 $12.71 $32.29 $10.19 $21.27 $9.05 $8.45 $10.77 REQUIREMENT CHART $7.16 $86.59 $30.94 $19.87 $11.68 $9.07 $7.84 MONTHLY SALARY REQUIREME 7.00% $86.49 YEAR $30.84YEARS $19.76 $11.56 $8.94YEARS $7.70YEARS $7.01YEARS ARS INTER7.25% EST YEARS YEARS $7.13 $21.39 $13.37 $10.92 $9.84 $9.29 $6.40 $5.82 $8.40 5 $86.04 $10.59 $30.39 $7.89 $19.30 $6.58 $11.07 9.50% $87.60 $31.95 10.50% $20.92 $88.05 $12.84 $32.40 $10.34 $9.21 $8.62 Based on GDS ratio of 30% Based on GDS ratio of 30% inclu $4.74 7.50% $86.71 $31.06 $19.99 $11.82 $9.21 $7.99 $7.32 7.25% $86.59 $30.94 $19.87 $11.68 $9.07 $7.84 $7.16 MONTHLY SALARY REQUIREMENT $7.26 $9.46 CH $6.55 7 $86.14 $10.71 $30.50 $8.01 $19.41 $6.71 $11.19 $5 96 $8.53 $5.96 9.75% $87.72 $32.06 10.75% $21 04 $88.16 $21.04 $12.98 $32.52 $10.48 $21.51 $9.36 $13.51 $8.78 $11.07 $10.00 including taxes ESTIMATING your$86.82 monthly payment, find$20.10 the figure$11.94 under the mortgage interest Based on GDS ratio of 30% including Payment Salary Payment Salary ta $4.87 7.75% $31.16 $9.34 $8.13 $7.47 $7.41 $11.22 $10.16 $9.63 $6.70 8 $86.26 $10.83 $30.61 $8.14 $19.53 $6.85 $11.32 10.00% $87.83 $32.18 11.00% $21.15 $88.27 $13.11 $32.63 $10.63 $21.63 $9.52 $13.64 $8.95 $6.11 $8.67 $350 $1167 $500 $1667 rate (%) that corresponds to the number of years you want to pay off the loan. $5.00 $31.28 $20.22 $12.07 $7.64 ESTIMATING your8.00% monthly $86.93 payment, find the$7.55 figure under the mortgage $9.49 interest $8.29 Payment$21.74 Salary $1250Payment Salary $9.80 $10.32 $6.85 $1750Payme 9 $86.37 $10.95 $30.72 $8.27 $19.64 $6.99 $11.43 10.25% $87.94 $32.29 11.25% $21.27 $88.38 $13.24 $32.75 $10.77 $375$9.68 $13.78 $9.12 $11.37 $525 $6.26 $8.80 $350 $1167 $500 $1667 FOR EXAMPLES: If your interest rate is 10% and the term of the mortgage is 25 years, $5.13 8.25% to$87.05 $31.39 $20.33 $8.44 $7.80 rate (%) that corresponds the number of years want to$12.20 pay off the $9.63 loan. $400 $1333 $550 $1833$750 $7.70you $7.01 0 $86.49 $11.07 $30.84 $8.40 $19.76 $7.13 $11.56 10.50% $88.05 $32.40 $21.39 $13.37 $375 $10.92 $425$9.84 $6.40 $8.94 $1250 $9.29 $525 $1750 $1417 $575 $1917$800 Then you8.50% pay $8.95 month $1,000 mortgage. $5.27 $87.16 $20.45 $9.77 $8.59 $7.96 FOR EXAMPLES: Ifneed yourtointerest rate per is$31.50 10% andfor theeach term of$12.33 the of mortgage is 25 years, $400 $1333 $9.46 $7.84 $7.16 REQUIREMENT CHART 1 $86.59 $11.19 $30.94 $8.53 $19.87 $7.26 $11.68 10.75% $88.16 $32.52 $21.51MONTHLY $13.51 SALARY $11.07 $450 $10.00 $6.55 $9.07 $1500$550 $600 $1833 $2000$850 payment: $8.95$31.62 Xfor(MORTGAGE AMOUNT/$1,000) = MONTHLY $425 ratio $5.40 $87.27 $20.57of $12.45 $9.91 $8.74PYMT$8.12 Then youYour needmonthly to8.75% pay $8.95 per month each $1,000 mortgage. of $1417 30% including $1583$575taxes $700 $1917 $2333$900 3 $11.32 $8.67 $7.41 11.00% $88.27 $32.63 $21.63 Based $13.64on GDS $11.22 $475 $10.16 $6.70 $450 $1500 $9.63 $600 $2000 $950 CALCULATING: If your mortgage amount is $30,000, your monthly payment= $5.54 9.00% $87.38 $31.73 $20.68 $12.58 $10.05 $8.90 $8.28 Your monthly payment: $8.95the X (MORTGAGE AMOUNT/$1,000) = MONTHLY PYMT find the figure under Payment$21.74Salary Salary Salary $475 $1583 $9.80 Payment $700 $2333 $1000 4ur monthly $11.43payment, $8.80 $7.55 11.25% $88.38 $32.75 $13.78 Payment $11.37 $10.32 $6.85 mortgage interest $8.95 x If($30,000/$1000) = $268.50 $5.68 9.25% $87.49 $31.84 $20.80 $12.71 payment= $10.19 $350 $9.05 $8.45 CALCULATING: your mortgage amount isloan. $30,000, your monthly $1167 $500 $1667 $750 $2500 esponds to the number of years you want to pay off the 6 $11.56 $8.94 $7.70 $7.01 $1250 $525 $1750 $800 $2666 $5.82 9.50% $87.60 $31.95 is 25$20.92 $10.34 $375 $9.21 $8.62 $8.95 x ($30,000/$1000) = $268.50 S: If your interest rate is 10% and the term of the mortgage years, $12.84 $400 $1333 $550 $850 $2833 7 $11.68 $9.07 $7.84 $7.16 MONTHLY SALARY REQUIREMENT CHART $1833 $5pay 96 $8.95 per month for each9$1,000 .75% of$87 .72 $32.06 $21.04 $21 04 $12.98 $10.48 $425 $9.36 $8 .78 $1417 $575 $1917 $900 $3000 o$5.96 mortgage.

TIZATION CHART

Based on GDS ratio of 30% including taxes

$87.83 = MONTHLY $32.18 $21.15 $13.11 $10.63 $6.11 $8.95 X (MORTGAGE10.00% yment: AMOUNT/$1,000) PYMT igure under the mortgage interest Payment Salary 10.25% your$87.94 $32.29 $21.27 $13.24 $10.77 $6.26 Ifrsyour amount $30,000, monthly payment= $350 $1167 you mortgage want to pay off theisloan.

10.50% $88.05 $32.40 $21.39 $13.37 $6.40 $375 $1250$10.92 /$1000) = $268.50 and the term of the mortgage is 25 years, $400 $1333$11.07 10.75% $88.16 $32.52 $21.51 $13.51 $6.55 $425 $1417 h $1,000 of mortgage.

11.00% $88.27 $32.63 $21.63 $13.64 $6.70 $450 $1500$11.22 AMOUNT/$1,000) = MONTHLY PYMT $475 $1583$11.37 11.25% $88.38 $32.75 $21.74 $13.78 $6.85 30,000, your monthly payment= $7.01

$7.16

32 | HOMEGUIDE MAGAZINE

$450 $9.52 Payment $475 $9.68 $500 $9.84 $525 $550 $10.00 $575 $10.16 $600 $700 $10.32

MONTHLY SALARY REQUIREMENT CHART

$1500 $8.95 Salary $1583 $9.12 $1667 $9.29 $1750 $1833 $9.46 $1917 $9.63 $2000 $2333 $9.80

$600 Payment $700 $750 $800 $850 $900 $950 $1000

$2000 Salary $2333 $2500 $2666 $2833 $3000 $3166 $3333

$950 $1000

$3166 $3333

Homebuyers Checklist Homebuyers — A Newcomers’ ChecklistGuide — Aand Newcomers’ WorkbookG

Monthly Homeowner Monthly Homeowner Budget Budget

Owning a home canOwning come with a home many can unexpected come withcosts. manyUse unexpected the following costs.worksheet Use the following to calculate worksheet how much to calculate money how much you spend each month, you spend so youeach can make month,sure so you can are living makewithin sure you yourarefamily’s living within budget.your family’s budget.

MONTHLY HOMEOWNER BUDGET

Owning a home can come with Monthly Monthly Budget HOUSING many unexpected costs.

Use theBudget EXPENSES Housing Expenses following worksheet Housing to calculateExpenses

how much money Mortgage you spend payment Mortgage (principal and payment interest) (principal and interest) each month, so youElectricity can make Electricity sure you are living Heating within your costs Heating costs family’s budget.

Maintenance and repairs Maintenance and repairs

AVERAGE COST PER MONTH

Average Cost Each Average Month Cost Each Mo $

$

$

$

$

$

$

$

Parking (if paid separately) Parking (if paid separately)

$

$

Property insurance Property insurance

$

$

Property taxes

Property taxes

$

$

Water

Water

$

$

Cable TV/Satellite/Video Cablerental TV/Satellite/Video rental

$

$

Car fuel

Other Expenses Other Expenses $

$

Car insurance and license Car insurance and license

Car fuel

$

$

Car repairs and service Car repairs and service

$

$

Charitable donationsCharitable donations

$

$

Child care (if applicable Child care (if applicable

$

$

Child support/Alimony Child (ifsupport/Alimony applicable) (if applicable)

$

$

Clothing

Clothing

$

$

Dental expenses

Dental expenses

$

$

Entertainment and recreation Entertainment and recreation

$

$

Groceries/food

$

$

Home furnishings Home furnishings

$

$

Internet

Internet

$

$

Life and property insurance Life and property insurance

$

$

Medical expenses, prescriptions, Medical expenses, eyewear prescriptions, eyewear

$

$

Newspapers, magazines, Newspapers, books magazines, books

$

$

Personal items

$

$

Public transportationPublic transportation

$

$

Restaurants

$

$

Savings (bank account, Savings retirement (bank account, or education retirement savings) or education savings)

$

$

Telephone/Cell phone Telephone/Cell phone

$

$

Other expenses

$

$

$

$

Groceries/food

Personal items Restaurants

Other expenses

Total Monthly Expenses Total Monthly Expenses

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