Thursday's Notes, DEV Project Tip

For the notes on thursday, May 14, we were reminded of how to calculate our GDSR. Or otherwise, our Gross Debt Service Ratio. Our GDSR will not allow more than 32% of our income to be spent or else you want to spend your time bored and hungry. Your Gross Debt Service is calculated by summing the monthy mortgage payment, the monthly property tax, monthly heating costs, and half of your condo fees if you're living in a condo. The sum of this will be divided by your Gross Monthly Income (this includes people who are living with you, unless they are minors).

The formula will be shown here.





In order to find out how much you can afford each month (the monthly mortgage), multiply your GMI by 32% and subtract the sum of the monthly payments with the product of the GMI and GDSR.

With this, we've found the monthly mortgage for this

Once finding the monthly mortgage, we can find the Maximum Mortgage Payment of an individual or a group of individuals. To calculate this we input this into the TvM Solver, the payment periods are set to monthly while the interest compounding periods are set to semi-annually. Once we find the principle value or PV, we simply add it to the down-payment to get our MMP.

Example:













There are additional costs to buying a house though.

1. Appraisal fees
2. Inspection costs
3. Property Survey
4 Insurance costs for high ratio mortgages
5. Home insurance
6. Land transfer tax
7. Interest adjustments
8. Prepaid property taxes and utilies
9. Legal fees
10. Sales tax
11. Moving expenses
12. Services cgarges
13. Immediate repairs
14. Appliances
15. Decorating cost

To find the additional costs, clarify all of the costs and sum them.

A reminder tip for the DEV project.

If you're using slides, do not turn them into power point projects. Always use short, attractive bursts of information with a large amount of images to support said information. Sometimes even an image itself is good enough to bring out what you want to say. Don't be afraid to use a lot of slides.


...the next scribe is Daniel as I didn't see his post. If he isn't there Amanda is next. If she isn't there, Camilla's next.