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What can You Afford?


Let us help you find out what you can afford! Our mortgage calculator will help you determine loan amounts, mortgage qualification, or whether you should be renting or buying.

Complete the fields below (e.g., Cost of Home, Down Payment, Monthly Income) and click Calculate Now. To view the different results of your calculation, click on the various tabs. To mail yourself a copy of your results, click the Receive this Detailed Analysis link.

Required Fields
Term In Years:     
Interest Rate:      %
Cost of Home:  $
Down Payment:  $  
Annual Insurance:  $  
Estimate Insurance to 0.43% of Cost
Annual Property Tax:  $  
Estimate Tax to 1.2% of Cost
Monthly Income:  $
Monthly Debt:  $
Optional Fields
Gross Debt Service Ratio (GDS):     
Total Debt Service Ratio (TDS):     
Condos Fees:  $
Results
  Receive this Detailed Analysis

Your Monthly Payments
 
Loan Amount:
Loan Insurance (%):
Total Loan (Mortgage) Amount:
 
Principal & Interest:
Homeowners Insurance:
Property Taxes:
Condo Fees:
Monthly Loan Insurance (%):
Total Monthly Payment:
Income Needed to Qualify for the Mortgage
Total Monthly Loan Payment:
Total Monthly Debt Payment:
Monthly Loan Insurance (%):
Qualifying Income of % GDS Ratio:
Qualifying Income of % TDS Ratio:
What You Can Afford
We are using the % ratio.
Cost of House:
Down Payment:
Loan Value:
Monthly Principal & Interest:
Monthly Insurance:
Monthly Property Tax:
Monthly Condo Fees:
 
Cost of House = [(Monthly income x Debt Ratio) – monthly tax – monthly insurance – condo fee] /
(monthly interest rate/ function of interest rate)
Renting
Monthly Rent: $
Annual Rental Increases:  %
Monthly Renter Insurance: $
Savings or Investment Rate:  %
 
Owning
Planned # of years in home: 
Yearly appreciation of the home:  %
Annual home maintenance:  %

The Truth Behind POWER OF SALE


 


I am surprised the number of clients that have approached me with what they think is the greatest deal in all of real estate - the power of sale property!

While these properties can often be purchased at a bargain, and several have yielded a good profit for their owner, one needs to recognize that power of sale properties are not for everyone.  Let me explain.

The first thing to know is that the house will likely be in need of renovation.  The walls, flooring, maybe even the electrical or plumbing and yard, will need some work.  You can benefit most from a power of sale property if you willing to do the renovations yourself.   

Another thing to know is that power of sale properties are sold "as is".  There is no negotiation, 'what you see is what you get'.  Also, the seller will not make any guarantee as to the chattels or fixtures, which means the window coverings, the shelves in the garage, even the appliances are not guaranteed in the sale. 

Also consider that the sellers will reserve the right to postpone your closing up to 60 days with little notice.  For example, if Ted's power of sale was closing on October 1st, on September 31st he could find out that the closing has been pushed to November 1st.  Even after Ted moves in, he is not guaranteed, for example, the appliances.  The previous owner has a specific period of time to attempt to reclaim those possessions.

All of these "non-guarantees" on a legal level, are to allow default time to the owner to come up with the money to reclaim lost assets.  Banks and other lending institutions will not make improvements to a property that may revert back to the original owner.  So, if you are considering a power of sale you must take into account the additional expenses (renovations, possibly appliances and potential rental costs).  Since the closing can be pushed ahead, not everyone is able to take advantage of power of sale properties. 

In my 25+ years of being in the real estate business, I have not seen appliances seized, closings pushed ahead, or a buyer dissatisfied with a power of sale.  However, even with thorough research, the fact remains that problems, although unlikely, can still occur. 

If you would like more information on power of sale properties, you can contact me at randallrose@cogeco.ca

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Randall Rose

Cell: 905-933-3459
Fax: 905-935-2764
Home:
Work Phone: 905-935-8001

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