Element this is Manoj at 3:00. I’m your host. I’m a real estate agent with re/max hallmark Thank you for your not joining tonight and Let’s give it a few seconds more and We are live now today so Again, thank you for joining and Let’s see. What is the agenda for the day today as usual? We’ll start with my monologue and Then we’ll take it over. So let’s see how we address the Agenda for the today Again thank you for joining. Let’s get to the program for the day first of all is my real estate monologue as usual and That will be home-buying step by step Now numerous queries have come around From prospects and for some people who know some of the know-how and the basic is the step that is missing is They would like to know how do you go about it? Well, what’s the exact process? I I mean So that is why I have put together this Process and that is home-buying step by step Before I get into the home-buying step by step. I will be explaining you another tongue and Then we will jump into this home-buying step by step The second format will be for the day is mortgage expert article review homebuyers need more detailed info now because of the statuary holidays today and My mortgage expert he is running late. So we will see He can join us or if not, then we will have to leave this article for next time We’ll see. He’ll update me once he can if he can make it It does not look like it but he’s going to give it a try. He said and we will take it from there and The last one will be rent to own homes and we’ll be going through the Documentation what all? Documents are required to put this whole whole thing together. So that is the agenda for the day and now Let’s start as I told you that Before I jump into home buying step by step. I’m going to explain your term call. Let’s start with that explanation there I’m going to explain you this jump, which is called high ratio mortgage insurance So what exactly does this mean because that is a prelude to my home buying Step-by-step, so I’m going to just walk you through this particular high ratio market insurance It means whenever a Mortgage in which a borrower places a down payment of less than 20% So whenever you’re trying to buy a property with less than 20% you will be paying a higher ratio mortgage insurance and I’m going to show you an example and I’ll Elaborate on this particular thing so you can comprehend and then we take it to the next level Okay, now this high ratio mortgage insurance is done by three companies at the moment in Toronto GT, Ontario By Canada Mortgage Housing Corporation. That’s called CMHC by Genworth Financial and By Canada guarantee. I am just concentrating on the GTA and Toronto and Ontario and it covers quite a huge area anyway Let’s get into it So now let’s say you are trying to purchase a property for half a million dollars and Let’s see the role of high ratio mortgage insurance into it Now The banks are only going to give 80% of the value as mortgage Okay, so that is they’re only giving you $400,000 on the property that That’s how the whole funding goes banks are only providing 80 percent of the purchase price Now you have given 5% and That is your minimum down payment so that comes to $25,000 So basically now if you can see in this equation there is a shortage of around $75,000 that Is where these three companies come into the picture and That amount that they are giving you which is like around close to 15% of purchase price that constitute high ratio mortgage insurance So that Is this particular amount is the high ratio mortgage insurance and they charge your premium of for it? So let’s explain you the premium amounts that you pay when you are trying to purchase a property So if your down payment was Five percent and all the way up to nine point nine percent Your premium is four percent of the purchase price So here You will be paying extra on this particular amount You will be paying a premium for this borrowing this seventy five thousand dollars Okay. Now let’s look at another number If you were paying ten percent down payment All the way up to fourteen point nine nine percent Your premium amount goes to three point one zero of the purchase price Okay now I’ll explain you I’ll walk you through even one more format, and then we will take it to a more explanation on this particular one Now if your down payment was between fifteen percent All the way up to nineteen point nine nine percent Then the premium that you pay is around close to two point eight percent of the purchase price So those are the premium amounts Now let’s explain you So you bought a property for five hundred thousand dollars and you? had put down a Five percent down payment that’s twenty five thousand dollars So you would be thinking my mortgage is now going to be four seventy five Know This four percent will kick in so close to nineteen thousand plus the phd roughly approx around close to four twenty thousand dollars is Added to this market. So instead of being the market being 475 it will be close to 494 495 So that is when you see your mortgage don’t be surprised and Feel where this money is coming from why I am getting charge That is what is the high ratio mortgage insurance. And that is what you have to be aware of Now Let’s get into the detail why I am like explaining you this particular term These are done by three companies, which is called CMHC, which is Canada Mortgage and Housing Corporation Genworth and Canada guarantee, so that is now where I am taking you to Explain you the next part of the exercise so Give me a minute let’s go to first the website, which is the Canada Mortgage and Housing Corporation website Okay We are here with this first one so these are the high ratio mortgage insurance companies and The first one is Canada Mortgage and Housing Corporation now all these links for all the websites are below when you are on the live stream, if you go slightly below it will Say show more and you will be able to see all these links in there Now the first one let’s start with Canada Mortgage and Housing Corporation and you should go and visit these websites because This is ton of information in here they and that’s what I’m trying to come down to and You will go down on this particular website You will see all this particular one buying tools and information to help you buy a house or condominium in Canada which is the one that we will be concentrating today on and You will have other rental housing developing more information about what’s going on in the city These are some this is where we are working Trey Home buying step by step. So we are going to pick up the CMHC guidebook today of home buying step by step and I’m going to walk you through because it is a tremendous read and it is comes with lots of information that will formulate your Will make it easy your process of purchasing This market calculator is an awesome one It will if you plug in all your numbers You’ll be able to see good numbers of the CMS of this loan insurance and things like that You have other stuff in there, which is like a housing observer so you have interesting reads in here it is a Toolbox with in it with numerous information So it is strongly advised that you go and review this particular one In this particular one now with CMHC, we are going to go through the home-buying Step-by-step. So that is where we are going to come back to this one and Before I come back to this one. I am going to take you to the next company, which is called Genworth Let’s see if let let’s give it a few seconds to upload this particular one Okay, now we are with another insurer which is called Genworth Financial or Genworth Canada and they are also one of the companies which does the high ratio market insurance They also have a booklet which is first on a step by step guide for first-time homebuyers And I needed to walk you through here. So there are tons of information In and you can pick up any of these guides and you should be able to see a lot of information in there Okay, this is like if you click on these ones you will get very very interesting reads I am just going to give you a synopsis of it Family living saving advice for families with children what to look for in a family friendly condo is Multi-generational home buying right for you again. You have downloadable readable information serum Next you come turn that fixer-upper into a head turner. All it takes is TLC that is tender love and care and PPI. That is the purchase plus improvements In one of my previous webinars, I had given you an insight on purchase plus improvement Very interesting lead if you’re trying to purchase a fixer-upper Next educational webinars these are the webinars that are going on, you know, and you can have an insight into those particular ones a Snapshot of Canadian financial fitness and home ownership attitudes so where things are and The last one here is the journey to homeownership is filled with excitement challenges and choices so all these three insurers have lots of information for you to review and That is why I am walking you through here. Now as I told you the this is the booklet for Genworth so Genworth has his own home buying guide and you can come down to this particular area first on again a step by step guide for First-time homebuyers. You can download it You can go through it and it has again ton of information there and at a later stage Maybe I will review this particular guide for you all Now let’s head to the third insurer, which is called Canada to guarantee again Canada guarantee also has a first-time homebuyers workbook Again, they are also you can learn it You can download it looking to buy your first home and eat some advice Start your journey with the first-time homebuyers workbook from Canada Garrett okay, so there is a workbook again for you here and This is their workbook which is the Canada guarantee first-time homebuyers workbook you can again go through it You can download it. And again, it has tons of information to assist you to purchase your first property Okay now let’s again I Will I have one more guide that I want you to? Have a look at and this is the Remax hallmark. This is my brokerage Remax Hallmark Realty limited that is their buyer’s guide and again The link is in the show more below the live streaming and you can have a look at that particular link and this also will Three it’s by Remax hallmark and you can go through this particular. These are all our offices and You can go through this one. And again, this is another insight into your home buying process So just trying to explain it to you that there is ton of information for you to process In order to make it extremely convenient for you to purchase the property Okay so now let’s head to our main formula which is the home buying step-by-step guide and this is the CMHC guide which i’m starting with today and We I’m going to take you over to this particular guide for within a moment Okay Okay, let’s go through this particular guide and I’ll walk you through exactly we are trying to make you understand the What all things have are being said in this particular guide? Let’s go through so you it is downloadable again, the links are there in the Show more below the live streaming. Let’s go through the first you will see first pages lots of photographs Second pages that you can get some more information at CMHC dot CA and These are These are all downloadable booklets. They have two booklets One is called the home buying guide and the second one is worksheets and checklist Workbook and checklist. So both of them are very very handy and both of them will assist to you in your venture Okay now Again, you can download these particular ones These are home buying step-by-step workbook and check licked at CMHC dot see a forward slash step-by-step and You have some tips for newcomers on buying their first home so many people are there who are newcomers and this this particular webpage Let me show you This particular webpage, so you can understand where that exactly that. Let me first open this webpage for newcomers Okay, let me take you there and so this is the page for Canada Mortgage Housing and corporation for newcomers. And again, if you will go down you will have tons of information guiding you to For the housing information for newcomers to Canada So it’s an interesting read and you should be able to get some good insight into this particular Okay, let’s get head to The step number one, okay, let’s begin here is home ownership right for you That is where this particular is Seeking information from us is home ownership right for you. That is the first tip Buying a home is one of the biggest decisions you will ever make. Yes. It’s a it’s a quite a task a We can make it easy, but it is a task in itself Any professional who’s been doing it for a long time can can assist you and will make it easy that that’s that is why they have done it numerous number of years and numerous number of times and That is where we come into the picture there What do you really want in a home very very important Your requirements should be Absolutely Worked out with you. Are you looking for a condo? Are you looking for a townhouse? Are you looking for a detached property? What are the things that you’re wanting a What is important do you want a basement apartment? Or do you are you wanting to live in the downtown core? Are you wanting to live in the outskirts suburbs? Your requirements are Very very important it will give you an idea where you are and where you are heading because now as you can see is We are getting from dreams into the reality part of it And when you come from dreams to reality now, we’re heading into the details of it So you actually enjoy the place if you do your homework, so that is where things are What do you really want? Your requirements have to be formulated and they have to be formulated very well What is your current financial situation, are you in between jobs? Are you speculating or are you like Very comfortable with where you are. Are you planning to stay there for a long time? It is the financial in Income that you’re getting regularly. Is that regular is it going up and down I mean How comfortable you are with so assess that particular one What are your financial and lifestyle need Lifestyle is a very important. Can you communicate commute for one hour from down of downtown to the outskirts? What are your lifestyle needs that is very what things are important for you in your lifestyle those are the basic minimum questions you need to come to Put it together for yourself Now let’s get into the real cost of homeownership. Okay, so let’s dwell into this particular part Okay, the initial amount of money that you need to buy a home, okay I have told you these are the three to three challenges that you have the downpayment The closing cost and applicable taxes when you’re trying to put together a property you you will need Most of the time you will need 5% down payment Yes, we may have some programs whereby if your creditor is very good Then you may be able to get some cash back But initially you will require that down payment upfront You’ll also require a closing cost Minimum down payment is close to 5% and As a thumb rule depending upon if you’re a first-time buyer or second time by if you’re first-time buyer the closing cost You get some rebate on that and comes Approximately as a thumb rule to one and a half percent of the purchase price So those are your upfront cost if you have those two minimum you’re good to start with now The guide is giving you some info there are some ongoing cost you Will have mortgage payments So on the basis of the market amount, you will have some mortgage payments to be given monthly You will have to pay property taxes now you can add it to your mortgage or you can pay separately as convenient to you or as for The discussions with the lender and what are their requirements and stuff like that? So property taxes have to be given Insurance you will require home insurance and that number has to be calculated also and Then your utility bills your heat hydro all utility bills they have to be also taken into consideration and These are the basics, which you cannot run away with Now you will also have some routine repairs and maintenance. It’s a house Anything can happen Everything may be fine on the day of the closing anything can even happen on With a no short period of time you move in even on the next day Everything is about like it’s a house and it may require some some money for Routine repairs and maintenance. You need to keep that money handy with you something extra. Don’t run from Very tight budgets there major repairs down the line there could be a Some repairs and renovations required roof replacement foundation repairs Any any and everything is Has to be kept in mind that be prepared for those particular things So that is what is the guide step number one is giving you a bit of an idea for let’s read dwell more into it This is something that they are very kingly want you to Buying a home isn’t for everyone before you make any decisions consider the following questions. Yes Please carefully consider this It is in your interest That you be prepared And Any professional and expert in real estate will also guide you just be make sure your numbers are worked out properly and so that There are no surprises made no major surprises Anything cannot be avoided but yes make you prepare for everything that can be that can come down the line Are you financially stable? So that’s what was the discussion there? Do you have the financial management skills and discipline to handle this large of a purchase? It is quite a purchase and I at this particular moment of time We’ll take a short break and explain you some of the numbers that may be involved When you are trying to purchase a property Are you aware of all the cost and responsibilities that come with being a homeowner So there are as we have given you an idea there. There may be some additional cost down the line Are you ready to devote the time to regular home maintenance how maintenance is also? It’s also an exercise. You have to be ready for it. You have to have know-how of some handy people if you require something their immediate access to them because It is always good to have those lists with you So that anything goes wrong you pick up the phone call and call them right away and get that help so that that is what it is in your interest so that it you can have your information taken care of Okay, I will we will get back to this particular one once and I will go through some of the numbers For purchasing a property so you get some ideas. What are the numbers we are talking here Let me give me a moment here and let me take what are my Okay Okay, now let’s go Back to our next steps and Okay Renting versus buying pros and cons. This is very very important You’re presently renting and You’re wanting to purchase now So we are going to do a bit of an exercise here first we are going to go through the renting pros and cons and then we are going to go through buying pros and cons and Then I will take an example and walk you through The renting let’s go through the pros first Less maintenance and repairs. Yes You just have to pay the basic grant and in case if you are paying separately for the utilities that’s there But you don’t have to pay for maintenance and repairs Anything is wrong. You pick up the call To the landlord. This has gone wrong Come and fix it up. It’s not your headache until and unless there is a difference in your contract, which is For some some stuff or the other but major stuff I would say is covered in maintenance in repairs Your monthly an upfront cost but office you are I Have a different version for it lower monthly enough front cost. I Yes, that is true. It is a lower monthly and upfront cost but the basic thing here is like Once we are trying to see the renting and buying process we we may come up with key like okay in this scenario and In the way that the GTA market or the Toronto real estate Market is going you may be much more Whatever amount you are, maybe even giving even though very less The buying maybe Buying may make more sense than renting but let’s go through the pros. Yeah, you have lower monthly and upfront cost Shorter term commitment, very interesting. Yes in a house, I mean You’re just wanting to live in a city for six to one six months to one year Renting may be the best option because you you are like in the process. You’re not sure about Where this this one would be the best for renting I would say a short-term commitment Making it easier to move into a new home or you’re in between jobs and you know click after some time like I’m moving in a different neighborhood and If I buy in this area that area may be far for me. So yes short-term commitment may work very well Protection from decrease in value okay in property values Yes, and no in the market if you are buying prudently and with the way the real estate Market is going on It is until and unless you have purchased the property at at the peak times and Overpaid for the property there is no decrease because if you have brought prudently and the market is going steady Then the decrease in property value. It’s a 50-50 would I would say it depends on your homework? It depends upon your mark trends and how much research you have done. But yes as a Consideration you you can’t figure out yes, there could be a decrease in the property value Now There is you may have cash to invest so when you’re not paying extra That particular amount can be a saving and you can’t have that saving to invest for a larger down payment for a home but somehow again, I have a a different Perspective on this one is by the time you save that larger down payment the property value has gone more So somehow saving for that down payment Doesn’t make sense Because in that period of time when you have saved the property value has increased by another Four or five percent and you you are now overpaying for it. I mean, how do you purchase return you would have had? Made more sense, so go through it And the the basic thing here is you have to understand the market there You have to understand the trend that is going on You have to have a careful read where things are where you got that’s where a professional comes into the picture Let’s go through the cons now Monthly payments may increase. Yes. I Keep on receiving these calls from the clients on a very very regular basis They have received a notice now and suddenly the landlord has increased the monthly per month by a hundred dollars by two hundred dollars and They would not like to see those surprises Again if you had taken a Mortgage with a variable interest rate and the interest rate have risen. Yes, they will go up so so in both the cases it is like 5050 I would say The risk that you lecie won’t be renewed That is quite a headache. That is quite headache suddenly your landlord comes and says he wants it for his own use or He says no, I’m done with this. We are not renewing your market anymore That risk is there You are paying someone else’s mortgage. Very very important to understand You have to build your own equity rather than building your own equity and I will take an example and show it to you with the market that is going on. It is in your interest to Build your own equity Okay now You cannot paint or remodel? Yes, so you have to live with what you have in your own property You want to change something you have some extra money and you? Something is bothering you You can take that chance just go get it done It is your own property You can enjoy that. Okay so that is the Renting pros and cons. Let’s have a look at Buying pros and cons pros For buying Freedom to renovate or modify your home as you wish Very very important very very helpful. You would like to renovate your kitchen. You would like to renovate your washroom You own that property Whatever you are doing you are increasing the value of the property So you are increasing the value and at the same time you’re enjoying the property It is it is in your interest to Enjoy the property and get bid when you are trying to sell it later Again you are building up equity in a safe secure investment as you pay down your market Absolutely a must You should look into this particular aspect of it You are building your equity Very very important you you are doing something towards your second income you’re doing something like Always but I have said many times in a lot of my other webinars It’s like a forced investment That’s what you’re doing Potential for rental income extremely important You can if you purchase a property which you can rent out a certain portion you will reduce your burden off the market and also Your at the same time building value in the property there is a rental income if you include the secondary sway suite The pros are getting much much more better stability Yes That’s the most important one you you can build something on top of it No one can give you a call on a certain date and say I want this property back You have the stability you have the peace of mind of Owning the place where you live Extremely important, that’s where it comes to Ok, let’s look at the cons are buying Financial loss. Yes If your home has lost when you value when you sell it can it can occur but that is where your prudent buying comes into the picture and that is when you sit down with a professional and Understand what he’s explaining you collect. How can you be a prudent buyer? I Have shown it in my previous webinars. You can be an extremely prudent buyer You do not have to indulge with emotions work with numbers Very very important because yes if you make a mistake, you get emotionally involved and you unless surely overpay for the property and Suddenly your circumstances change you have to make a move there can be a financial loss but if you go through proper prudence Format of purchasing you can mitigate this quite a lot Responsibility for all ongoing cost but of this you have the mortgage principal interest property taxes insurance and maintenance Yes, you have those but then you work out those numbers right on day one and Keep some extra money for all these extra things that can occur and But there are ongoing cost. Yes There are surprises very sure Anything can happen It’s a property. It’s a it’s a it’s a big project Monthly payment can increase significantly if interest goats goes up at renewal time yes, that’s what we discussed if you had taken a variable rate and already recently there have been two interest rates hikes and We this is what is anticipated. Now in order to mitigate that you can take a fixed interest rate so that your life is much more controlled, you know exactly what’s going to happen and But also there have been studies that a variable interest rate over a number of years has still been less Then the fixed rate so you you can go through those number crunching and again market lenders your real estate agent your Family and friends who have gone through this process can be guides Possibility of unexpected and potentially costly repairs. Yes. That is absolutely true You must have seen that there was quite a snowstorm last year and Lots of trees went down lots of others Roofs came down Costly repairs. Yes They are part and parcel of the purchasing a property you you have to work with that those numbers but in the end I mean you way out although his particular ones and now Let me take you through an example for renting Versus purchasing, let’s see if I can put some more numbers crunching into this particular one again, before we leave this particular page CMHC dot c– a forward slash renting it gives you quite a lot of insight into Renting and also, we have already discussed this there is a page for newcomers and You can absolutely go through that Let me see if I can get you on the renting versus buying page Yes, we are there so let’s go there wonderful Okay, so now let’s begin with an example for renting versus buying And let’s see if I can put some more insight into it Let’s say the and that’s the rental rates these days The rental is let’s say between $2,000 per month to $2,300 per month so I’ll take that as a basic markup to give you this example and let’s suppose you’re trying to purchase a property which is Half a million dollars because that’s the value in the market these days to purchase any property any basic minimum property the utilities are $300 per month and the taxes are 300 per month. I’m just doing round numbers to comprehend this particular example Let’s work on this For anything I am taking the lower rental amount. I’m only sticking to the $2,000 per month. I Am not working with the higher number and let’s go because that’s the basic minimum you are You will be spending these days in case if you need to pick up a property for rental $2,000 per month and Let’s say all the utilities and Anything extra is included in this particular $2,000 per month keeping it simple Just trying to understand where some basic numbers are so that means You have spent $24,000 per year on your rental property Simple there is no big simple math set. Nothing complex Now, let’s look at a property and instead of renting it out Let’s give you an idea that you want You should purchase it. Let’s suppose I am guiding you and I say go ahead and purchase instead of renting it out Let’s see your numbers. They’re Your mortgage I am again running round numbers Let’s say suppose. You’re you have good credit you have everything is going on in your with 5% down payment closing cost you had and you pick up a property and Your mortgage is going to be now $2,400 per month Your utilities plus insurance let’s say is $300 per month and Your property taxes are another $300 per month so now your total amount Comes to $3,000 per month now you may say I Have $2,000 per month to pay but I do not have $3,000 per month to pay. I understand that But let’s look at a scenario Where you can work with those same numbers and let’s see. So why not we go and see a property In which you can rent a portion of the halls For a minimum of thousand dollar per month. I’m running very low numbers for renting With the market going on Finding a property Where you can get it $4,000 per month is not easy But I’m just giving you even the basic minimum So let’s say suppose. You rent out a portion $4,000 per month now Your grand total is still $24,000 per year and you have now purchased a property Okay, you may say what about the rest of the headache? Okay, let’s go through that You pay pay for the head you get paid for the headache so now let’s review this rent versus buy review So you were renting $24,000 and you have lost all that amount of money. That’s a negative sign. So this particular whole amount You have lost there is no recourse for this particular amount of money Whereas you had you bought this property and there is an appreciation of let’s say even minimum 5% With the way the trend is going on you will see that the amount of money that you is appreciating is even more than this I’m still taking Minimum keeping it simple So that we reach something positive And 5% appreciation you you have now made $25,000 So you have now pocketed one thousand dollars and your entry? in value so basically Whatever amount that you paid has become a forced saving That’s the that’s the importance of buying With the way things are present. Can they change? Yes, if the market goes down drastically If these numbers start becoming negatives, yes, that’s a different equation but at the moment from the past few years the trend that is going it is In your interest to purchase than to rent if you can afford the numbers here Ok, I understand When you are trying to buy I have already told you there are four challenges involved The first challenge is your credit score the Second challenge is the income I’ve told you your annual gross income multiplied by four times for a condo Multiplied by five times for a freehold. So you have to have the income. Yes. I can understand and Then you may require the initial deposit i’ve told you if you have the 5% plus closing cost close to six six and a half percent if you can put that together with family friends relatives and everyone together and Once you close the property you may be able to get some cash back We can walk you through the deposit scenario But yes, are these issues there? Yes. Do you have to overcome them? Yes But then you do the hard work and you get paid for it you go into the positive directions There is also very important factor that was left out there you may not be comfortable renting at all You should look at at that particular stage you have to do an exercise look into it and you may get within five or six months of your Working hard you will see good results once you go through these steps by steps and a positive approach and if your numbers crunched our proper Consideration. Yes This particular $3,000 or the $2,000 is Like a force to saving you are investing in that house sometimes you just look at it and say oh I have to pay this and This much money is gone. No, it’s not actually gone. It is a forced saving And that is what you have to look at when you are purchasing a property You have to have an eye to look from this particular angle That is this money as a force to saving. Yes, you may have to leave out on some of your other funds that some other things that you were wanting to do and Concentrate on making this work, but then in the end it will reward you Lastly let’s say suppose This this is this is what was one of the ideas that I had also given our webinar on You can also ponder like okay Everything of yours what you are telling it looks good. Okay I do not have the income to qualify for a property of half a million dollars You can also work with co-ownership get some family and Get some friends involved. It’s mutually beneficial. He may also he or she may also not be able to procure a property You both can work together It’s you enjoy the place and when you sell you make money So I am a strong advocate that with the scenario that is there in the market these days Consider buying Then renting it out Okay, so now let’s head to our next Format Okay, so now You remember I had discussed That let’s let’s go through some numbers crunching That you can understand what is a 400k property purchase involves and I have been updated just now that the mortgage broker is not able to make it today and so I Will be completing This and then the documentation part and then we’ll call it a day and we will use his expertise for next time okay, so now let’s get ahead with 400k property purchase Okay, as in my previous examples I’ve given you that the income required will be $80,000 for of Freehold 80 multiplied by five times For a $400,000 property you will be annual gross income. We are talking here and if you are trying to purchase a condo your income should be close to 400 K four times the income for 400 K property purchase Okay The minimum down payment is required is 5% so again, these are some of the numbers crunching that we just went through you have the market amounts and You have the property taxes and everything. I’m just giving you two scenarios how much is the down payment options and Let me guide you here. Again. This is the one that we are at this moment discussing it out Okay, let me guide you here In our Example that we are dealing with I was walking you through collect. There are upfront cost and then there are ongoing cost So these are the two which I am explaining it to you on the basis of some for an example So that is where we are so we have the down payment the closing cost and that’s what I’m explaining you in the upfront cost and Then I’m going to explain you the ongoing cost with some numbers crunching. So let’s head to the Numbers crunching here So we are here so the minimum requirement is five percent down payment and that is twenty thousand dollars Closing cost so I gave you an example that you would require one and a half percent of the closing cost There is some first-time rebate and things like that. I’m just working on some round numbers and giving you some These thumb rules and these are very close and they should they are approximate but close enough So total you require six and a half percent of the purchase price so the amount total amount that you’re requiring to purchase a 400k property is close to twenty-six thousand dollars and This is where we can come in to help ease that there are some banks and lenders who are willing to give you cash back and You can get a cash back off up to three percent of twelve thousand dollars so if you were with family friends relatives and everything and you were managed to get the initial twenty six and After closing you can have twelve thousand dollars back. So in the end you can in You you may have be out by around fourteen K from your pocket I’m just trying to but some of these cashback requires that your Credit score should be good enough, so That is one of the upfront cost that we were dealing with with some examples now Let’s head to Ongoing cost So now let’s work with this particular format So for a 400k property with 5% minimum downpayment let’s see some of the numbers crunching and we are going to first work with freehold properties and if you purchased a freehold property for $400,000. Your mortgage amount is Let’s say approximately close to $2,000 Your utilities are 300 all these around it just to make it convenient property taxes another 300 home insurance close $200 and Now your per month amounts are going to be close to twenty-seven hundred dollars per month Now let’s say suppose you were trying to buy a condo for $400,000 most all these particular amounts will remain the same except your utilities may become a maintenance condo maintenance and There may be an extra three from 300 is goes all the way to $600. So there’s an additional $300 here and For a condo it may go down up to $3,000 per month. So those were some of the examples to give you for Ongoing cost Okay, now we are on to our last agenda for the day and that is documents and contract forms and That is what I have written it for you, please do not get overwhelmed Don’t get overwhelmed. We are there to guide you Documents and contract forms, we will guide you completely These are just trying to explain you that when we ask for these documents, these are some of the documents that will be requiring So, let’s start with documents which are required First is the job letter You will require Wherever because these are the things that the mortgage broker is going to ask you for is your job letter which will state this is his amount of income per hour or per week or per year and That will give him an idea. What is your annual gross income? two years notice of assessment the most of the lenders these days require two years notice of assessment that will tell them how Much was your declared income in 2016. How much was your declared? Income in 2017 so they will get a good idea. What was the income that was? That was filed You will require t force They would like to correlate and would like to make all these documents You should have the t force when you are in a job and you have to provide those to the mortgage brokers Mortgage brokers will also ask you for latest pay stubs What exactly it is going? There may have been an increase in the payment you are Working for a long period of time for the particular company. There are pay raises that are there and Those pay stubs will support that particular income which is trying to put it together again credit score and full credit report so That will give them an idea what you’re exactly credit score is and they will be able to review your credit reports how is your payment methodology and What not? So these some of these steps will help you? In order to put all these particular things together. They will also require your IDs generally, they require two pieces of IDs and Valid valid two pieces of IDs that’s what they will require in order to put everything together So these will be your documents that will be required now let’s explain you some of the it’s I am just wrapping up the one-hour I within 2-3 minutes more I should be able to wrap these real estate buying documents for you a Bio representation agreement You’re the buyer. I am. Let’s say representing you and there will be a buyer representation agreement between you and me. I get paid by the sellers, but I have a contract with you most of the time I get paid by the sellers there are different instances when we sit down we’ll walk you through all those nuances and the details and And through the buyer representation agreement contract completely Agreement of purchase and sale Very important. This is the document that you will be signing When you are trying to put an offer for a property that’s called agreement of purchase and sale I Will be providing you Links for all of these and I’ll be guiding you exactly where you can see all those documentation in one of the websites Now in case of you’re wanting to instead of going buying you were doing a rent-to-own Then these are some of the documents that you should be aware of the rental application You must have done a rental application when you are trying to rent a property, so this is a similar rental application Agreement to lease again. This is another documentation which you will have to do with schedules and That is called agreement to lease which forms the main agree lease And the rental application is the one that where you are providing all your information and everything the agreement to leases between you with Us a tenant and the Landlord and with skid and that would be called the agreement to lease in a rent-to-own This is something extra that you will have to come up with Option commission agreement again, don’t be overwhelmed. We are there will be guiding you through these documents and they are all there for you to read and For you to become aware of exactly what’s going on in there Option to purchase. Yes, because rent to own means you’re not buying today you’re buying tomorrow That tomorrow can be anywhere from one to five years Option to purchase you will have the option to purchase you will have a price which you will Formulate on day one and those will all be forming part of the option to purchase. What all are the Nitty gritty the details the terms and conditions they will all formulate in the option to Wonderful, so This brings us to the conclusion and next week. I will be taking you through some examples and More details. Let me head you to some of the two pages that I was wanting to walk you through and That will conclude us for the day and I am just Updating this particular one and within a moment. Give me a moment here that it will upload and Then I can Guide you there for this particular? Exactly, so give me a moment here. I picked up the Wrong page. Yes Okay, so now we are on that particular page. Let me take you there Okay This is my web page and I will have a link to this particular page for you which is my Manoa 3com /tu underscore homes this is my rent-to-own page and You have an access on the I will put a link for this particular one and when you will scroll down on this particular page Right at the bottom You will see all these particular agreements and if you will click on these particular ones You will be able to go and see all these documents there By representation agreement agreement of purchase and sale and when you’re doing a rent-to-own contract rental application agreement to Lease Option Commission agreement option to purchase and all these requirements which we have just discussed These are all here for you to read more about these particular things so again Let’s conclude I am five to six minute ahead over my and these are the last Page that I would like to guide you with and this is called this is the email that I sent most of the time to you all and It has a subscription to my newsletter Which goes to you daily if you have not subscribed? Please subscribe to the CML newsletter in this particular one I create around 8 to 10 articles on a daily basis and Put them together and I email them to you on a daily basis This gives you the heads up. What is going on in the market? What’s the trend? what is the latest news that’s coming out and That is where it is like for example Canadians can expect an 11 percent decrease in buying power. That was the top article for today and again This n is an insight into your real estate of Toronto GTA and I am Thank you very much for joining me today and I Really appreciate you being here and I hope it was worth your time our market expert Oh Hopefully should be there for next time. He is quite an expert in credit repair and getting you the best mortgages in the market add the best interest rates and He and he is a power excellent a mortgage broker He he does wonders for his clients, and he’s a part of my team. So I look forward to putting your Ventures together feel free anytime Give me a call. I’ll be more than happy to take you to the next level again, thank you and Talk to you later. Bye for tonight. Thank bye