What's your number?More often than not it is not the price that you pay but rather your monthly carrying costs. So many folks start the conversation with I want to buy a condo for $$$ dollars without realizing that the most important numbers to look at are the monthly carrying costs.
Several years ago, I wrote a short commentary on carrying costs “It’s all in the numbers” The only thing that has changed since then are the numbers. The principle remains the same.
Below is an example of what the estimated carrying costs for a one-bedroom, one-bathroom condo, that sold recently could look like. The grey-ed out area is to demonstrate the income required with 5% down based on the stress test qualification requirements.
On that basis, what you may be required to pay will likely cost less than what you need to qualify for!
Recognize that every applicant for a mortgage is different. You may qualify for a slightly better interest rate. To find out what your carrying costs may look like let's start the conversation Here