A8 - The Terrace Standard, Wednesday, August 10, 1994 BCom Cost of your purchase As.a general rule your -.. should’ look for a home where your mortgage loan debt service ratio (principal, interest and taxes) will not excead 30 per cent of your gross annual Income. Consult your real estate professional, bank, trust company of prospective mortgage lender to determine the amount of - Mortgage lean for which you qualify. Your current gross - dabt ratio {amount you owe on tar payments, department store and credit cards) will have a bearing on the final sum the financial institution will approve. Down Payment When you make an offer to purchase a property, you will fender-a “deposit with that offer, and that sum will oo become part of the “down payment,” which is generally {he amount of tha total purchase price that is not covered by your mortgage loan. (le. -- on a $100,000 purchase you have qualified for a 75 per cent mortgage loan, or $75,000, which means the down payment will be $25,000. The deposit would probably be in the nelghbouthoad of $5000 -- a sum that will assure the vendor you are ‘a seriously motivated buyer -- leaving a further $20,000 of the down payment to be tendered at the closing date.) Other Closing Costs Are Cash Costs It is wise to remember that In addition to the down Looking fora home fakes a lot of effort. Here's a checklist to make your search alittle easier. In one comprehensive format, comparing the pros and cons of potential real estate buys becomes a cinch. payment there are other payments that must be considered part of your purchase obligation and you should make sure sufticlent money Is available for: Mortgage Costs «- these could include appraisal fees, mortgage fees, Interest adjustment, legal fees and mortgage Insurance. Sometime these ara added to the mortgage and sometime they ara not , so ask in advance when you are checking with your financial institution. Remember too, GST Is charged on such services as appralsals and both GST & PST are levied on legal fees, but not on the mortgage Itself mor the mortgage insurance fees, Legal Fees — which will be charged by a Sollcitar or Notary Public to attend to the conveyancing procedure necessary to convey title of the property to you, register the change in the land Title Offlce, and prolect your interests in all parts of the transaction. Your real estate agent can probable estimate to you what these costs will be. Again, be prepared to pay seven per cent GST & 7% Provincial Sales Tax on the bill for this service, Property purchase tax -- was instituted -by the Provincial Government In 1987 and is currently levied at one per cent of the first $200,000 in value and: two per cent on any remaining balance. This is payable by the purchaser upon application to aby or rr I i ay Sey The obligations expenses: of a home purchase a Land Title Office to register a fee simple estate, lease, agreement for sale or any court order by which land Is transferred. There is some PPT rebate available to purchasers of a property valued at $200,000 or less, but. it is tied to high-ratio mortgaging. Ask your REALTOR, lawyer or notary about this rebate plan. Tha STATEMENT OF ‘ADJUSTMENTS will list these costs, and also outline any pre-payments that must be shared on a proportionate basis with ‘ihe vendor, such as property taxes, mortgage Interest if you are assuming an oxisting mortgage, equipment rentals If any, or local improvements, water rates, atc. that are apportioned in the same mannar as taxes, Don't forget that moving costs, and hook-up charges for services such as cable, hydro and telephone are also in the future of a home buyer, and today all these services carry a further seven per cent GST charge. {f you're contemplating a home purchase, make sure part of your planning is the recognition that closing costs are CASH casts. Be prepared by planning for these costs beforehand. There Is no “average” sum for these costs, but your REALTOR wilt probably be able to estimate falrly closely for you, based on the value of the home you buy and your financial resources. pe on kK i \ eee ETE peewee ve enmenn en ante _ TERRACE STANDARD | A WILL PICK ; OS UP THANKS FOR LETTING m ME STAY THE _ NIGHT. Ug DESIGNATED DRIVER Lakelse Lake MLS $144,500 experience in real estate. 635-7068 richard evans Horseshoe EXC $79,500 8 years expetience In real estate, 638-8882 john evans Kitwanga MLS $21,000 || AUGUSTONLY GSTREBATE | BENCH PARK faa [ee f went A vt 8 years experience in real estate. 635-4773 erika langer Sead PA A A ARAL PALA PAL A A ate PA PLS id i AALS mil aN ot lth il PALAPALA PALE PACC PICS RLS ALS PA Ae Lal ee ee t wa iy x7” Take this _/ helpful guide on your house-hunting adventures! ~ Your Checklist For Buying A Home House #1 House #2 “House #3 House #4 Address Location Price Realtor’s Phone Number Neighbourhood Characteristics Size of Lot Number of Roams Extra Space of Value Special Features Peculiarlties Major Replacements Minor Replacements Appliances Financing Taxes/ Assessments Utility Costs Schools Transportation Family Reactions Landscaping 6 years experience in real estate, 635-2697 joyce findlay 2 years experiance in tpal estate. 635-3004 sheila love Lakelse Lake MLS $125,000 Horseshoe MLS $102,000 experience In real estate. 635-3389 ae City Acreage - 1.06 acre Horseshoe - Zoned R-3 $130,000 EXC Clty Acreage - 2.24 acres Keith Estates - Zoned R-6 $69,900 MLS Commerclal - Highway Irantage comer lol $41,500 MLS Rural Acreage - 10.64 acres $32,500 EXC 2 years experience in real estate, 635-3833 olga power 2 years experiance in raal estato. 635-6236 diana wood 7 Ke Thornhill MLS $24,900 & & yae® id? 36 %, AT sae so" Magy * co ee’ Bench MLS $319,000 [_Troil WLS $116900 4 Os 4 4 years experience In real astale. 638-0047 steve cook 638-1 4005 5 B