So, a credit history has begun. You have found the job or started to study and are working at the same time. At this moment your family budget is very important – knack off spending money.
Here are some advices, which will help you to spend your money in the right way:
1. Your monthly income has to be bigger than your expenses.
2. Have an eye on discounts; look through the advertisements, “Publie-sac”.
3. Do not take the credit which is lasting a long time, for example, credit to buy a car.
4. Buy only necessary things.
5. Do not buy expensive things without family member’s knowledge.
6. You always have to have on hand «cash cushion».
Third step – get to know the price on dwelling, which you want to buy.
Surely the price is in an advertisement. But you have to consider subsidiary expenses. So, add:
+ 5% from the price of dwelling (or more, if you want) – Initial installment.
+ 900$ and more – benefits of notary-lawyer.
+ 400$ and more – inspection of dwelling.
+ 300$ and more – price of evaluation of realty for bank appraisal for taking mortgage.
+ to 3.75% from the sum of mortgage depending on initial installment, when initial installment is 20% from price of dwelling the insurance is not obligatory – mortgage’s insurance from CMHC (Canadian Mortgage Housing Corporation), or another insurance company.
+ Tax on buying dwelling (mutation tax). Counting: the first $50.000 from the price of the house – 0,5%, the next tranche from $50.000 till $250.000 – 1%, remaining sum, more than $250.000, is to levy a tax on 1,5%;
+ Property tax for several month in advance (the term depending on the month you bought it and how much the salesman has already paid.);
+ Relocation costs (do not forget about change of e-mail address, transfer of phones, internet, TV cable , etc)
So, count and decide, if you are ready to buy the house of your dream… maybe it is better to wait or to find cheaper dwelling.
