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12-ibe Canadien Champion, Ftiday, April 10, 1M9 -1, i Whsn should 1 buy? When prices are fallîng people say that you should wait until the mnarket 'bottoms out" and when prices are rising you are told to buy now to avoid being ieft behind! No one can accurately predict the best time based on the market. The best time to buy is when you decide that the time is right based on your financial position, your family and job situation. Remember "The primary purpose of buyîng a home is to provide you and y our family with shelter with security - the investment aspect is a bonus." Are yeu rsady? Have you demonstrated an ability f0 save? Are you ready f0 change spend- ing habits fo support the additional costs of owning a home? Do you have a good credit rat- ing? Are you prepared to enter into a long term comniitment? Is pride of ownership impor- tant? If y ou answer "yes" f0 most or ail of the abovr. then you are ready for the next step. What can you sfard? Two main considerations are - initial cost (cash) and continuing cost (mortgage and taxes). As a first time home buyer you can qualify for a 95%/ mortgage hence the first consideration is the size of your savings. Multiply your saving by 20 f0 arrive at the maximum purchase price of the home. If you have $10,000 avaliable today this means that you can purchase a home for $200,000.00 -- perhaps! Dut of the $10000 wie have f0 deduci Mark MallaliGu legal fees, land transfer (although this can be saved under government initiatives for first time buyers, moving costs etc.) Lets use $3000 as a guide which leaves $7000 for a pur- chase price of $140,000. Now we need to consider the mortgage costs. At 7% your mort- gage of $140000 will cost $98000 per month plus taxes of about $1 25.00 for a monthly cost of $1,105.00. Can you aff ord this? Can you qualify for this mortgage? One of the guide- lines which the ending institution will use is the Gross Debt Service Ratio (GDS). The gelier- al rule is that this shallflot exceed 30% of your income hence in the example above you will have to show a family income of $44,200; do you qualify? This is only a very brief look at the costs/qualifications involved in the process of buying a home. You very next step should be to talk to REALTOR and have him/her work through this process in detail. A useful guide available f rom your REALTOR is the book "How f0 buy your home" published by the Ontario Real Estate Association. Mark Mallalieu is the Broker/Owfler of REALTY WORLD Millpond Realty, a past president of the Oakville, Milton and District Real Estate Board and a past director of the Ontario Real Estate Association. (1) REALTY WOKLD MILLPOND BEALTT INC., BEÂTOlI . 189 Main St. E., Milton 876-0633 HALTON CREDIT UNION - NEf.VW MEMBERS ALWAYS WELCOME! 1/2% Reduction off posted rates e.g. Posted rate 6.85% SPECIAL RATE 6.35%. Save up to $5,000 on interest costs on a $2000 mortgage over 5 years. 00 ~CASH BONfuU -3 Year Term $300 e 4 Year Terni $400 a 5 Year Trerm $500 We have Thi Minimum mortgage $1 00,000 fto QUtILICMHC financlng avallable up to 95%. N [101W SPECIAL 1BONUSGe Apply for a mortgage before May 31, 1998, upon closing you 187 G, lin f111wIII receive a complimefltary smoke alarm and carbon o IJU.______monoxide detector. 273 Ou This entire offer subject f0 change without notice. Some conditions may apply. laves' Sevel --e iree convêflient locations better serve you. Milton Branch min St. E., 878-4168 orgetown Branch 3uelph St. 877-6926 Dcton Branch jeen St E. 853-0911 Atlas Van LUnes Like A Good Neighbor State Farm Is Thereo UN SUR5ANCi 1 575 Ontario St. S., Derry Centre Milton, Ontario L9T 2H2M Telephone: Office 878-8871 State Farm Insurance Companies e Canadian Head Offices: Scarborough, Ontario au rSTATE FAIM INSURANCE ILY NEEDS