Ritu and Mahen Agrawal P. Eng.
BE LIFE RICH, NOT HOUSE POOR!
Buying at the top end of your pre-approval price could be setting you up for many dull years to follow.
Because, your home cost is more than just a mortgage payment.
There are property taxes, maintenance, utilities and more due every month. If those add up to 35% of your total income, you’re on the right track. If not you might have to sacrifice in other categories such as vacation, debt repayment or savings.
Budgeting is really a piece of cake, or a pie in this circumstance. The pie chart here illustrates a tried, tested and true method to financial success. It shows how your entire set of financial responsibilities can be broken down into these five areas.
Housing - 35%
Transit - 15%
Debt - 15%
Savings - 10%
Life - 25%
All it takes to balance your budget is a bit of time and organization. The more you apply it the better your financial position becomes and the more home you can buy, knowing full well you can still be life rich living in it.
Help is available, contact us today to see how your next home fits into your budget.