Where is your Comfort Zone?

Adding It All Up

The following are two first-home buying scenarios. They represent typical financial situations based on patterns we have observed over the years.

	Buyer 1	Buyer 2
Annual household income	$ 40,000	$ 75,000
Monthly utility costs	$ 250	$ 300
Condo fees	$ 0	$ 200
Monthly payments on other loans, credit cards etc.	$ 100	$ 100
Total Monthly costs (35% gross income)	$ 1,167	$ 2,188
Mortgage interest rate	9%	9%
Mortgage period (years)	25	25
Monthly mortgage payment	$ 817	$ 1,588
Mortgage	$ 97,000	$ 189,000
Deposit (10%)	$ 10,780	$ 21,000
Value of home and onetime costs	$ 107,780	$ 210,000
Note: These are simplified examples only based on sample data. (US dollars)

Employment Information:

Property Information:

Conveyance, approved plans, cost estimate and estimate of value on completion if building
Valuation report and pictures of property if buying

Bank and other financial references.