Problem: how much money down should you place on a house and how much per month should you spend to "carry' the house?

Solution:

1. Get a financial advisor
2. Develop a long-term plan, which should include retirement savings and home ownership. Determine how much you should spend on a house -both in terms of deposit and on monthly payments, and how much per month you should allocate on retirement savings
3. Review demographics - where will you be if values of real estate drop in fifteen years? - Develop a strategy that allows for savings and investments in growth vehicles. Resist temptation to spend as much as you can afford - do a realistic budget with your planner. Don't fall into the trap of putting all your money into an asset that may not retain its value -hedge your bets. Be sure you budget for all of life- vacations, children, disability insurance, maintenance of house, fire insurance and leave a reserve for surprises -its one of the few things you can count on!
4. Be sure you budget for all of the costs of closing -consider the following;

• Appraisal fee (lender)
• Home inspection fee
• CMHC / GE CAPITAL application fee
• CMHC / GE CAPITAL Insurance
• Tax on CMHC / GE CAPITAL fee (PST)
• Property survey (maybe)
• Title Insurance
• Legal fee for purchase
• Legal fee for Mortgage
• Disbursements incurred by lawyer
• Land Transfer Tax
• Adjustments - property taxes, public services, home/fire insurance, condominium fees etc.
• Property Insurance
• Mortgage Brokers Fee (maybe)
• Document registration charges
• Transaction levy (Ontario)

5. How to get to a financial planner?
Ask Bank
Relatives / friends / coworkers -get references -the good ones are great but the bad one will do you no end of harm
Don't be shy -ask them how much they charge and who pays them.

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