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C ' WAlHlllX) CHRONICLE - Wednesday. lune I l. 10“ ° 2] I “ Careful that you don’t become house rich and cash poor uying a new home is an important tips, bonuses or overtime earnings do not And keep in mind that your mortgage porate housing costs into your overall long- lifestyle choice â€" you decide where count â€"â€" but two-income households can interest rate could increase over time. term financial plan ~ and to determine you want to live based on the type of useacombined “family” income amount. Once you‘ve accurately established the which mortgage options and payments borne you want. the neighbourhood, per- The second lending formula is known as real costs of your dream home. besure you work best for you. haps proximity to schools or parks, and for the Total Debt Service ratio (TBS). won't end up "housebound" with too much Finding the right home is a terrific it host of other personal and it takes into account other debts. such as ofyour money going towards mortgage pay- accomplishment -â€" and with the right family reasons. car payments and credit card ments by: financial plan. you can feel perfectly comâ€" Hut first and foremost, you payments No more than 40 per 0 Creating a budget and trying it out for a fortable in it and accomplish all your other must correctly answer [his key cent of your gross (before-taxes) few months to see ifit's doable. life goals. question: How much house can '\ K i 5 ' v monthlydncome can be allocat» ' Considering a smaller house and mom '" iafford? ed to your housing costs and gage that gives you more lifestyle and miscolumnispnmidadbyMthchni‘eomuan l‘hat's an easy question to other monthly debt obligations spending flexibility. time Wealth ManagemenL Contact Rim McFachrue, ask but there are no easy at . such as credit card payments. ° Working with your professional adviser tiPFPCA, (I)FAat519-886â€"2a60,m.241argon; answers. Lenders typically use ' loans and so on. and a mortgage planning specialist to incor~ mmhnie.wm 'two formulas to determine the These calculations create the . maximum loan they are pre- \ foundation for the amount of pared to offer you. The first is . mortgage you qualify for â€" but known as the Gross Debt Serv- by themselves, they do not nec~ ice Ratio (ODS) which requires essarily give you an accurate that your housing costs are not assessment of the mortgage more than 30 per cent of your amount you can carry. gross (beforertax) monthly To do that, you have to look income. l’he GUS calculation at your total financial picture â€" includes mortgage principal from the taxes you Will my the and interest payments, property , cost of homeowners insurance. taxes, 100 per cent of expected heating home maintenance (“05157 perhaps new fur- (osts, secondary financing (ifapplicable), as “In"? and appliances. to your preferred well as 50 per cent of condominiutn fees of lifestyle SUCh as eating out, travel and so on. applicable) You also have to look at titential lifestyle (hily assured IllL onie sources count in changes like haVllig children or monng from the talcnlation Variable income, such as ddUHl 10 it single incotnesituation. A new ( lll( poll conducted by Nielsen obligations as they neat retirement," said iinds that on average. (anadiatis currently (‘hristina Kramer, executive vice president, holding some form of debt expect to he debt retail and business banking, (film; "Taking a tree by the age oi M . two years sooner than realistic look at your current level of debt and .i similar poll toiidutted in 2011, despite a your plan to pay it back is a critical step steady climb oi t otisiinier debt levels during towards reaching your financial goals and that time ensuring that you are not being overly opti- lhe poll also revealed that for (itnadians mastic about when you'll be completely debt turrently aged 3”: M, more than two thirds free " are still t'arrvmg debt, emphasizing the need When it comes to debt. lllY isn't for every to take (it iron to maki- those dt-lit tier one lhe poll also shows that while some ‘ tlrmnisa reality Lanadians With debt are tryitig to lighten "( atimlians haw good intentions when it their debt loads, they aren't talking about . tomes to paying down debt, but unless they their goal to bedebt free with an advtsot. and have a solid finant ial plan iti plau- thry may 25 pet tent say they haven't taken any at non O I n u S O r a n \l|ll find themselves with significant debt to accelerate debt repoyment. ‘ 0 0 O I It'll-OH l IatIOrl sesssmn. . I ‘l . Q' ,/ ; ’ I Wednesday, June 11 June 25 5:45 pm ‘ N ‘w: Jil"" ' m". ' . " , tern" v Antone West Nair" oJohusga ”. a “7 Pl 6? ”l ”Obi (""“i3" NH“ '.t,1l t,.,.fi' ,,.",HH,M”’,,HW. U as _ DotetJune 23rd l a ”you”, My ANN” Annual Excumon rune- 7pm , W , to to. South Pacific rm m» n w rm OM 771“? PM 99 f I 28 do” an, _ m 20,5 he; i o" * STILL ACCEPTING APPLICANTS FOR FALL 2014 . :l‘l.:-\,--Jll ' Ti 0 \ i ,‘ : y - , Jmpirtnq [on “L m