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Buying Simulation with Closing Costs break Down

Okay here we go for a $129,00 Condominium listing .

This was originally written for an investor client of mine new to investing in Ontario, however whether you are an investor or first-time home buyer hopefully this will prove illustrative of the buying process.

Keep in mind this is for informational purposes only .
Purchase Price of $125,000 with 20 % down payment or $ 31,250 ,first mortgage of $ 93,750,taxes of $1410\year($117.5\mnth),condo fee $ 4020\year($335/mnth)
tenants pay all utilities and contents insurance .Keep in mind that typically lenders will require mortgage loan insurance if a borrower has a down payment of less than 20% of the purchase price of the home.For more information regarding mortgage insurance go to the link below .
for investment options check out this link
Closing costs
Lawyer approx.$2200 including Land transfer tax
Partial break down of costs
Land transfer tax         $1050  for more info on land transfer tax
Title Insurance            $270
 Search                      $125
Actual Lawyers Fee     $500 
for land transfer tax and mortgage calculations go here
for interest rates
Payments before management,vacancy and maintenance (at least 1 mnths rent for expences)
Loan Amount:  $93,750.00  
Loan Insurance ( 0%):$0.00  
Total Loan(Mortgage) Amount: $93,750.00 
Principal & Interest:$583.20  
Homeowners Insurance:$0.00  
Property Taxes:$117.50  
Condo Fees:$335.00  
Monthly Loan Insurance (0%):  $0.00  
Total Monthly Payment: $1,035.70 

Thus Income                        $ 1600.00
Less Payments                    $  1035.70              
Monthly Cash Flow                 $  564.30   

 I didn't go into detail regarding expenses such as property management, maintenance and vacancy  due to the wide variants in expenses for individual small condominium units such as the unit this unit was based on.  Specifics such as the age of the unit and its appliances etc. very widely and as I mentioned in previous correspondence the physical location would have a strong bearing on the vacancy and management costs .

If you have further questions please feel free to contact me.


Jim Straughan
Sales Representative
Century 21 First Canadian
voice 519 641 4355
London & Middlese
x Real Estate
Published Thursday, March 13, 2008 2:19 PM by Jim Straughan


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