Know What You Can Afford

 How high will my monthly mortgage payments be?
Knowing your affordable price range will bring your house hunting into focus.

How much of a house you can afford depends on three things:

• How much you can afford for the monthly mortgage payment

• How much of the down payment you have available

• The amortization, or length of time required to pay off the loan, assuming interest rate does not change

Dominion Lending Centres Lakehead Financial can help you determine what you can afford. Mortgage calculators are available to show you what payments to expect, and how you can save money over your repayment period:

• The Mortgage Affordability Calculator shows you how much you can afford.

• The Mortgage Payment Calculator works out the mortgage payment plan that is right for you.

Discerning Property Value

  How is the market value of my property determined?

The market sets the price. Your local Royal LePage REALTOR® will help you set a realistic price to match market conditions.

Your REALTOR® can give you a comparative market analysis based on similar homes in your area. It will show current listings, recent sales, and expired listings (a good thing to check because these houses are usually either overpriced or poorly marketed).

Your REALTOR® will help you develop a competitive price based on:

• Location
• Size
• Style
• Condition
• Community amenities
• Financing options
• Market conditions (Is it a buyer's or a seller's market?)

Remember: The market determines price. Avoid the urge to price your home based on considerations that do not affect its market value. For example, the following do not affect the market value for your property:

• How much you need to purchase your next home

• How much you paid

• How much you spent on improvements

• The value of a similar home in a different community

• The cost to build the same home today

• Your personal attachment to your home (Yes, it's your house and you're proud of it, but this makes no difference to potential buyers.)

Types of Home Ownership

  What type of home ownership is right for me?

There are three broad categories of home ownership:

1.  Freehold

The owner owns the house and the grounds.
Freehold homes offer the most privacy and freedom of choice of any type of home. Homeowners are free to decorate and renovate as they please. They are also responsible for all the maintenance both indoors and out.
Freehold is the most common type of home ownership.

2.  Condominium

The homeowner owns the unit and shares in ownership of common elements. Condominiums are usually apartment buildings, but also include townhouse developments and developments of detached buildings on private roads.
The homeowner is responsible for the interior area of the unit (everything from the plaster in). The condominium association is responsible for the up-keep of the exterior of the building, common interior elements (halls, elevators and parking garages, for example) and the grounds. All condominium owners pay a monthly fee to the condominium association to cover maintenance costs and common utility fees and taxes.
Condominiums often have strict rules regarding noise, use of common areas, and renovations to units. Condominium residents often enjoy less privacy than residents of detached homes.
Condominiums are usually less expensive than freehold houses.

3.  Co-operative

Co-operatives (or co-ops) are similar to condominiums but instead of owning your unit, you own a share in the entire building or complex.
Co-op residents pay for maintenance and repairs through monthly fees and are subject to the rules and regulations of the co-op board.
If you decide to sell your shares and move out, the co-op board has the right to reject your prospective buyer.