Thursday, January 27, 2011

Zero Closets Here I Come!

If all goes well, in 27 days I will be the proud owner of a very cute loft in Toronto!  After only 30 minutes of negotiations by my fantastic realtor she got the price down to exactly what she said it should be. 

I paid less than the list price (by just under $5,000) which was 97% of the list price. Financially, I was comfortable with paying the asking price, but that's just not what it was worth, so my budget will be happy to "save" that extra money per month.  When I put together the first draft of my new budget I had guestimated hydro costs to be $100/month.  I was happy to look over the bills last night and see an average of about $38/month.  Since hydro bills are expected to rise by 45% or so over the next few years I'm glad that I overestimated.

According to various Mortgage Affordability calculators online I could afford anywhere from $207,115 (ING) to $214,362 (TD) to $218,737 (BMO) based on a $20,000 down payment (I like round numbers when calculating!).  There is NO WAY I'd be comfortable spending that much on my beer budget -- in fact, I paid $43,000 under that amount.

Lets say I was crazy enough to purchase a home for $218,000 with a downpayment of $22,000.  Factoring in mortgage (@ 3.99% for 5yrs), CMHC fees, insurance, condo fees, and taxes I'd be looking at approximately $1,356/month OR 45% of my take home monthly income.   

As it stands right now I'm looking at all costs related to owning this condo to be between 36-37% depending on the final mortage interest rate negotiated - a bit over Gail's recommended amount, but I have no debt and transportation is only 1-2% of my budget.

Over the next month I see a lot of home buying-related posts, so hopefully any first timers like me will learn something along the way!



  1. Wow! Congrats! :) You must be super excited to have a "your place"! :D Have fun decorating ;)

  2. No kidding!! CONGRATS!

    I also didn't know you were in Toronto.. we should meet if you want :)

  3. Congrats on your new home!!

    Jordan and I looked at condo's in the city but many costs just as much or more as a townhouse with less parking and no room for puppy!

  4. Wow, congrats! I've just started reading your blog but I feel really happy for you! Can't wait to see lots of piccies :)

  5. Place looks awesome. You did good. Having lived in a few Toronto condos myself I could totally see why you'd want to buy a loft instead of a "normal" condo. The condo builders are cramming more and more condos in the same amount of spaces, and the condos in downtown Toronto continue to feel more and more crammed. Having a higher ceiling and a relatively "airy" place is rare around here. What an exciting journey to embark on - congrats!

  6. You’re lucky with your realtor! Sadly, I can’t say the same about my most recent experience. I know they act as mediators, which means he should have been able to lay my concerns to the seller and vice versa for a win-win deal. Anyway, I’ve read in some of your posts that all have gone well. Congrats!