Rent vs. Ownership – Barry Mills

STOP MAKING YOUR LANDLORD RICH!

pursue the home ownership possibilities!

Samples Of Payment And Income Qualification Summary ZERO $$ DOWN

Rent Paid or Total Monthly MortgagePayment

P+I+T

Gross Household Income to Qualify

Purchase Price

CMHC

Insurance Premium

**

Mortgage Amount

**

Principal & Interest Monthly

Estimated

Monthly Property Tax

$1,003

41,414

151,608

5,336

156,944

877

126

$1,042

42,857

157,395

5,539

162,934

911

131

$1,069

43,839

161,400

5,680

167,080

934

135

$1,121

45,840

169,438

5,963

175,374

980

141

$1,186

48,265

179,204

6,307

185,511

1,037

149

$1,248

50,594

188,551

6,636

195,187

1,091

157

Samples Of Payment And Income Qualification Summary with 5% DOWN

Rent Paid or Total Monthly Mortgage

Payment

P+I+T

Gross Household Income to Qualify

Purchase Price

5% Down

CMHC

Insurance Premium

**

Mortgage Amount

**

Principal & Interest Monthly

Estimated

Monthly Property Tax

$1,000

41,272

158,400

7,920

4,891

155,371

868

132

$1,039

42,714

164,500

8,225

5,079

161,354

902

137

$1,067

43,768

168,900

8,445

5,215

165,670

926

141

$1,121

45,799

177,500

8,875

5,480

174,105

973

148

$1,184

48,156

187,500

9,375

5,789

183,914

1,028

156

$1,248

50,560

197,500

9,875

6,098

193,773

1,083

165

** mortgage amount includes the cmhc insurance premium

YOU CAN USE YOUR RRSPS FOR YOUR 5% DOWN
PAYMENTS ARE BASED ON A 4.60% INTEREST RATE (MAR 1, 2004)
PROPERTY TAXES ARE BASED UPON 1% OF PURCHASE PRICE (LENDERS RULE OF THUMB)
THERE IS NO GST ON PURCHASE PRICE OF PREVIOUSLY ENJOYED HOMES
$100.00 PER MONTH FOR HEAT IS INCLUDED FOR MORTGAGE INCOME QUALIFICATION

THE ABOVE CALCULATIONS ARE ESTIMATES AND QUALIFICATION STILL DEPENDS UPON A FORMAL MORTGAGE APPLICATION, CREDIT VERIFICATION AND OTHER CONDITIONS AS MAY BE NECESSARY FOR MORTGAGE AMOUNTS AND APPROVAL

FIRST TIME HOME BUYERS FREE DOWN PAYMENT

Example – The cost of the home is 159,000 The financial institution will provide you with the down payment equal to 5% of the property purchase value. You must be approved by the financial institution at the 5 year posted rate, have 1.5% of the purchase price in cash to cover the closing costs and have a good credit rating.
CALL BARRY AT (403) 875 2310 FOR FURTHER DETAILS....

Why Rent When You Can Own Your Own Home and Build Equity!

Example - Lets say you are paying $950 rent per month, over a period of 3 years you have paid $34,200 with no equity.

Let’s look at Scenario # 1 - 5% down payment on a home value of $159,000. Assuming a market value increase of 3% a yr over 3 yrs, the value of your home would be approx $173,740, less the mortgage principal balance of $145,051 = $28,649 equity, less original down payment of $7,950 = net equity gain $20,739.

Scenario #2-same assumptions, $206,525-$172,419-$9,450 down payment=net equity gain of $24,656.

USE YOUR RRSP’S FOR YOUR DOWN PAYMENT!

Now does owning a home make good financial sense?

Important Numbers to Know

STOP MAKING YOUR LANDLORD RICH!

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