Wednesday, May 13, 2009

IT'S a LATE scribe POST

Hi, Today in class the first thing we did was hand in the answers to our homework.Then Mr. K. went over the answer after we handed it in. After that we talked about the advantages of leasing and buying a vehicle.


  • Lower initial Payments
  • Get to drive most recent vehicles (new)
  • Can not modify the Vehicle


  • You own the vehicle it is yours
  • You have an unlimited amount if kilometers
  • You can modify your vehicle

Shortly after we talked about buying and renting a house. Renting is basic it is monthly payments( + hydro, water etc. if not included in rent). But you will never own the house if you rent it.

Buying a house is quite different. You must have a minimum down payment of 5% of the value of the house.

EX: A house is valued at $100,000 your minimum down payment will be $5,000

how? value(100,000)*minimum down payment of 5%(.05)


Then you have to get a mortgage. A mortgage is like a loan from the bank that you have to obviously payback but with interest.

EX: The mortgage will cost you $106,400

how? balance($95,000)+ total interest($11,400)


The Mortgage balance is what is left over from the total value of the house after the down payment is made.

Also Mentioned In Class

The GDSR-Gross Debt Service Ratio is how to find out he maximum amount of your income you can afford on a house (32%).This can be expressed as a formula:

GDSR=Mo. Mort. pmt.+Mo. Prop. tax+Mo. heating cost+ 1/2 of condo or strata fees

Gross Monthly Family Income

Equity-The part of the house you own.

Next Scribe is:DANIEL


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