With $2200/month you can buy FIRST HOME 🇨🇦  | Hidden Mortgage Saving Tips | Cost of living in Canada

With $2200/month you can buy FIRST HOME 🇨🇦 | Hidden Mortgage Saving Tips | Cost of living in Canada

Come. Come. Come fast. Have coffee. Thank you. There is no sugar in it. Let’s Start. Hello, You beautiful people, and welcome to another episode I’m Richi. I’m Deepak. And today's video is going to be very exciting, because it’s based on the hottest demand topic. What’s the price of our house and monthly expenses? So, its all gonna be about, Money-Money-Money-Money So Guys, One thing I wanna tell you about Deepak. He is our finance guy, he is really very good at getting us great credit card, bank-related, or mortgage deals. Thanks to him. Actually, we were able to save thousands of dollars Of course. Like it’s a matter of finances, and it’s bigger money that we are talking about. You need to do all the research and whatever money that you can save, just save it. Save it for your wife. Buy her something nice. Of course. So, to give you a brief, We took our first brand new house from the builder in 2017.

It was a single-detached home around 1700 sqft. So of course the price is appreciated considering the hot Canadian market. But we really want to put forward all details with you guys, our journey of savings for downpayment and how was the house that we took. When you book a new house in Canada. It has a base price, and on top of that, the number of upgrades you have done, all of its price is added. So as we said, our base price was $409,900. On top of that, we upgraded around $20,000, which is Countertop, Tilings, Cabinets, different things. So, in total, our net price was around $427,000. So, after the house price, the downpayment is the second most important discussion Right. So, around two years ago, In 2015, we took a random mortgage approval just to see how capable we are And on that base, we made a target of 20% to save for downpayment.

So, based on our Net Price, the downpayment came to be around $85,453. Now, the downpayment’s structure of the new house is slightly different from resale houses. In a new house, you have to give some amount of downpayment at the time of signing the offer. In our case, it was 5%. And then the rest of the 15% we gave at the time of closing. Guys, One more amazing thing, We literally saved 22000$ while choosing our mortgage optimally, and, we are gonna share those tricks with you.

Stay till the end of this video, you may also save some of your money. So Guys In addition to the downpayment, we also saved some cash for Closing Cost many people term that a ‘hidden cost’, But it basically includes for example Lawyer fees, Taxes and Other things related to the house. So in Canada, first-time homebuyers get a rebate in Land Transfer Tax. In our case, In our region, we received a rebate of $4000, On that base, our cost came $532.54, And that rebate may vary from region to region.

So, apart from that, we had paid Lawyer Fees that include Legal Fees, Title, and Deed. That cost around $2000 After that, we had paid Mortgage Discharge Fee, this is the fee that you have to pay to your lender, which was around $400. We also paid around $300 for the Appraisal Fee Appraisal fees can also be charged by Mortgage companies for appraising your house. And total we paid around $4000 as Closing Cost. So, in our next video, we will cover “How we found the perfect deal while selecting the mortgage, And what features did we used due to which we actually saved a lot and make our process easy with less effort? So, make sure you subscribe to our channel and don’t miss the videos. So based on our net price or 20% of downpayment, $341,000 became the principal amount that we will borrow from a lender. We took this mortgage at a fixed rate of 2.54% for a fixed term of five years. There is always an option to get a variable rate as well but, we went with fixed-rate because it was better at that time.

buying a house in canada

Usually, the loan you take, you can pay it off in either 25 years or 30 years, which is referred to as the “Amortization Period”. In our case, we went with 25 years. So after all this, our bi-weekly payment becomes $769. Some of the information you find in this video is very obvious and basic. But please keep in mind, this home buying series is intended to help everyone including first time home buyers. In order to save money instead of going for 30 years of amortization, we actually went with 25 years. That actually helps save around 22k$. Secondly, Instead of going for regular bi-weekly payments, we went with accelerated bi-weekly payments.

That helped us save around 13k$. So the third thing was, We negotiated the mortgage discharge fees and the appraisal fees, that the lender was charging us. Most of the time lender gives you a hard time, but they will waive it off. So the fourth thing that we did, We started paying some extra money towards our mortgage payments. this is another feature that you want to look in your mortgage that allows you to put some extra money over the time. To all our lovely subscribers who have asked our home tour again and again, please be insure that video is in making and we will post that soon.

So Guys, these were the expenses before buying house. Somebody rightly said that the house actually comes with the expense. So this list is not going to end As soon as we moved in, we got the monthly expense list, which we really wanted to make sure to have that under our affordability. So the biggest portion of this expense is the Mortgage Payment, where we pay around $1672 per month. This seems like a big number but don’t you worry, a part of it actually goes towards your equity. The second biggest number is Property Tax, in which we pay $356 every month. and this tax may vary from city to city. The third is the Utility which includes Electricity, Gas and Water’s bill. And as a family of two, we pay roughly $89 per month.

Fourth is the Property Insurance, for which we pay $50 per month. The fifth point is the Water Heater. In Canada, most of the houses rent this water heater, whose bill costs us around $35 per month. So in total, our monthly fixed expenses cost us $2202. So Guys, We don’t want to scare you through this video, we don't want to demotivate you about the cost, how the things will be done It is very important to know how much cash do you need before taking home And how much your monthly expenditure is going to change.

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