You have enough put aside for a sizable downpayment for a condo your Realtor just found for you. The location, the amenities, the set up - everything about the condo is perfect. You can’t let this one go. But can you really afford to buy it considering all of the new expenses you’ll have?

Well, for the novice homebuyer, costs related to homeownership, such as taxes, maintenance fees, mortgage payments, and if applicable, utilities, can all seem a little daunting at first. You may think that you won’t be able to afford everything. But generally, if you add up all of these costs and they don’t go over 40% of your total household income (before taxes, of course), then you’ll be alright. Enough will be left over for daily expenses and savings.

I want to buy a house, but I don’t know if I’ve got enough money. How much do you need for a down payment?

Not to fret. These days, a down payment isn’t even required when you buy a house. If you meet approval requirements, all you really need is to cover the closing costs. This is as low as 1.5% of the purchase price.

Want to buy a place but think you won’t get approved for a mortgage? Here’s a common question from one of our readers.

For someone that does not have great credit are there options for getting a mortgage?

Bruna, our Financial Representative, says:

I genuinely appreciate the question as most people want to ask but don’t.

9 out of 10 times the answer is yes, although it does depend greatly on the specifics of the situation that lead to the low beacon score. As a worse case scenario, we can take a look at doing a deal through our in house broker. They are there to ensure that no one is declined. However, the rates are usually a little higher.

I would only be able to provide you with a definite answer once we spoke, as there are different variables that we consider.

In order to determine the status of your credit check, an application must be completed. This application form is emailed to you and can be filled out when you have the time. This would be the best place to start as many people think they have poor credit but it generally is not the case. If it turns out that you do in fact have poor credit, we can work something out for you!

Hope this helps and please do not hesitate to contact me at all with any questions whatsoever. We are here to help ensure that this process is as seamless and stress free as possible for you.

For more Financial Advice, please contact Free Condo Guide’s Mortgage Specialist, Bruna Anacleto at 416.508.6324

With an RBC Royal Bank® variable rate mortgage, your payment amount stays fixed for the term; however, the interest rate will fluctuate with any changes in the RBC® prime interest rate*.

This means that your monthly payments will remain the same, but if our prime rate goes down, more of your payment will go toward your principal. And if our prime rate goes up, more of the payment will go toward the interest. (more…)

Royal Bank Canada (RBC) has made it in the top 100 of the world’s sustainable companies for the fourth year in a row. The ranking, unveiled at the World Economic Forum, is based on criteria established by Innovest Strategic Value Advisors and Corporate Knights. The best-developed abilities of companies from around the world were examined, in the areas of environmental initiatives, human capital/labour relations and strategic governance.

With this prestigious ranking, as well as being taking the top spot at effectively managing environmental risks and opportunities by the online version of Newsweek magazine in 2007, RBC has become and maintains its standing as one of the leading companies in the world.

So how is this relevant to you, as the homebuyer or seller? Well, if you’re going to deal with a bank, you might as well deal with the best.

For more information about mortgages and the financial home buying/selling process, contact Bruna Anacleto, RBC Mortgage Specialist at 416-508-6324 or email her at bruna.anacleto@rbc.com

Though you may have been approved for a mortgage and can now cover the price fo the home you’ve decided to buy, remember that you’ll need to cover additional fees to complete the buying transaction. These three important fees are related financing, insurance and legal issues.

Financing fees cover the administration and other related costs that you incur during the financing process.

Mortgage loan insurance fees must be paid by buyers who have received a high ratio mortgage. Typically, a down payment of less than 25% is a high ratio mortgage, and requires insurance purchased from the Canada Mortgage and Housing Corporation.

For legal assistance in the purchasing process, whether or not you get a mortgage, you’ll need a lawyer. And we all know that lawyers don’t come cheap. Make sure to set aside enough funds to cover these legal fees.

Wouldn’t it be great if the proposed GST reduction from 6% to 5% became reality? The federal government announced plans to reduce the GST on October 30, to come into effect on January 1 of 2008. Wow. I still remember when it was dropped from 7% to 6%.

So how does this affect you when it comes to real estate?

Well, since GST is added to the price of residential structures that have just been constructed or greatly renovated, home buyers will most likely be pleasantly surprised.

The 6% rate will apply to all new or renovated homes if there is a transferral of ownership or possession prior to January 1 of the new year.

If transferral occurs after January 1, 2008, 5% will be applied.