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WITBY FREE PRESS, WEDNESDAY, DECEMBER 12,1984, PAGE 17 REAL ESTATE NEWS w DOLUAR $Efl$E Homebuyer's aid By Stephen Landau, CA Buying a home is a coir. plex financial decision re. quiring careful thought and planning if you are to avoid «repenting at leisure.» Here are the main com- ponents of your home-buy. ing plan: What house can you af. ford? Mortgage companies have established a general rule in determfining what a family can afford per montli in combined mnortgage pay. ments and property taxes. This rough guideliné is a maximum of 30 per cent of gross family income (before taxes). Dollar Sense offers gen- éral financial advice by members of The' meti- tute of Chartered Accountants of Ontario. Stephen Landau ije swith ]Reoinick Wintraub & Co., Chartered Accouait- ante. Toronto. Note, however, that this is a guideline only. If you have five children, for instance, -you probably won't be able to afford 30 per cent of the gross family income because of the extra money you will have to put into food and clothing. Similarly, think about what would happen if your working wife had a baby or if you plan to send your children to private schools. ,.Other household operat- ing.cpsts: Make a complete list of other operating costs, including heating (oil, nat- ural -gas *.or electricity); hydro (you'llý pay, more if you have air conditioninig); in surance (the amount to get is the replacement value of the buiidings, but not in- cluding the value of the land, which can't be des- troved); repairs and main- tenance (higher for an older home) and the cost of fur- n- nishing your new home. E_ Financing considerations: d 0f course you'Il need a sub- d stantial downpayment be- fore you can buy a-ny home. - The figure to aim for is 25 i- per cent, an amount which allows you to buy your home *without the need for the smortgage insurance neces- I sary with «high-ratio» mort- igages of more than 75 per i cent of a property's value. * The Mortgage Rate Pro- tection Plan: This les a form iof insurance available from 1 the federal agency, theCan. ada Mortgage and Housing Corporation (CMHC), to protect you against large in- creases in mortgage rates when your mortgage must be renewed. But it costs up to about $1,000 and probably is not, worthwhile for mortgage terms of less than five vears Other considerations: There are many extras that can add up to expenses vou might not be able to afford when it comes time for the closing of the deal on vour home. So make sure you have al- lowed for mortgage ap. praisal fees, the survey, regi- stration of the mortgage, Ontario land transfer tax (0.8 per cent of the purchase price, less $180), insurance and legal fees. The location of vour dream home .- in the centre of the city or in the suburbs .. affects more than the pur- chase price. Location also might determine whether you need a car or a second car and the resale value if you move again in five or 10 or 20 years. Location is also important in terms of schools and shopping. And it affects bv- laws (if vou're planning to rent out rooms, for exam- pIe). A.E. LePage reports.... Droppm g rates prompt house buy*n TORONTO - Further dedlines in mortgage rates of three-quarters of a percentage point have -sparked greater interest by business and consumers in real estate, according to the latest A.E. LePage Canadian Mortgage Market Bulletin. LePage spokesmen report increasing in- terest in varions pur- chasing options for both commercial and residential properties, with commitments in- creasing in some cen- tres. "Even though mor- tgage rates have been falling rapidly, many .potential homebuyers, anticipating even fur- ther declines, remain cautious," says Don' Hewitt, LePage's residential mortgage spokesman. Nonethe- less, home buying ac- tivity has increasedý in many Canadian centres in! LrVcent wexs. As nmortgage rates decline, home owner- ship becomes accessible to more and. more people, adds Hewitt. For example, on Oc- tober 29, three-year mortgage rates stood at 13 1/ per cent. On -an. $80,000 mortgage, these rates translate into monthly payments of $910.00 per month (prin- cipal and interest). A combined annual salary of $40,000 would be - - * w required for mortgage approval. Currently, three-year mortgage terms are* 12 1/ per cent. Using the same mortgage, payments translate into $853.00 principal and in- terest per month. A combined salary of $38,100 now is required for approval. Commercial spokes- man Bull Anderson, reports that although rates still are expected to faîl further, they now Io,.~ SSHOPPING DAYS 1- ~ TILL CHRISTMAS 94*; are below 13 per cent, where experience has shown activity levels in-. crease. "Mortgage rates now are approaching the lowest level for this year and mnterest in. com- pletmng deals definitely O ~ WE'RE THE NEIGHBOURHOOD V PROFESSIONALS. 824 Brock St. N., Whltby ï~EEIfLI.668-6221 GOLD JACKET REALTY LTD. (Across ftrom the Curling RInk> The, Canadian Mor- tgage Market Bulletin is based on information from A.E. LePage's rýesidentidl and com- mercial managers acrâss the country who are ini daily contact with the Canadian money TalktD stinWevebeen axound asloga ack in 1848 when Whitby was named, act-oss the Atlantic on the Isle of Man, Richard Costain was busy leat-n- ing the trade of a master builde- Today, weil over a cen- tut-y later a Canadian company stili bears the Costain name. And today Costain Limnired is christening its newest, Each is a spaclous residence ranging from 1815 to 2824 square feet, testing on a big, beautiful Our craftsmen are the fit-st step in that commit- ment to quality And when their work is done, it's backed by the New Home\Wartanty F%-gram, a pt-ogram act3aalIy inispir- ed by one Costain intro- duced to the industry in 1969. 7he Lancaster/Elevation FP?$121.990 ArzÎst %;Impression lot. The most meticulous And, after thit-ty years design and the finest of building homes in featua-es and finishes go Canada, as welI as the into every home, but United States, Costain that's only a part of it. bas learned that by care- When you fully mô nitot-ing have superior evet-y phase of workmen, you construction, get superior wos-k- ~a potential prob- manship. That's lems are virtually why we empioy 'eliminated which only the most enables us to experienced, dedi-- deliver as much cated and exact- home as possible ing craftsmn.-- for the dollar FALLINGKO SALES CENTRE OPEN. Monday - Thursday 12;(X) noon - 8.1X) p.m.. friday 124X) noon - 6«)Xip.m.. Sac..Sun. &Ho)s. 1:()Oam.- 600p.m. Tlephhone 427-6676 ~p .*___ I~E ~ Come and visit us dure ing our'Grand Opening this month. See our miany different floorpians and discovet- why you,Whitby and Costain lwere ail made for each other. JUST LISTED Loy. 4 B.R. home ln Pringle Creek. Fl. to oeil. F.P. In F.R. w. W/0 to balcony. Future RAR has a W/Stove w. W/0 to a lg. fuily fenced yard. Wyons Sinclair 668-6221, 668-5733. I r- L FOR SALE t 0 ILE [- RE-JALTrOR ýj RfMWA 4-%UM4 a