There is another way for living in your own house before buying. It is called Rent to Own. It is good concept but each deal is different. You have to study deal properly and ensure that it is in your favour. Not only in terms of saving money but you should consider living standard too. It is tough to find good deal. If you can negotiate properly, you can find the good deal.

Mostly not suitable for peoples who wants to just save money and do not want to consider the living standard. If anyone wants to improve his/her living standard, there is the cost. Some costs are worth. It helps in future if not in current time. You have to visualise and plan accordingly.

Money is very important but not everything. How you and your family enjoy the life is more important. Time never come back.

Search Rent to Own in Google for more detail. It is mainly for peoples like you who doesn't have enough down payment or has not enough good credit score to have mortgage. Some home owner wants to take and advantage of the deal and offering home at high price. So, take your time and make sure it is in your favour after negotiation. It should be WIN-WIN situation for both owner and buyer.

Anyone has personal experience with Rent to Own deal?

Please share..

Thanks

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Originally posted by Kacchu

I am looking in city of toronto, and looking for mortage like say $ 1200( including mortgage, condo fees, insurance etc)

Not sure if this is possible

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Fido.

My logic is say condo cost is say $250000 , i take 30 yr mortage, last time i was at the bank financial ad visor told me she can get me mortage at 2.25% as my credit score is over 800 points


So my calculation is mortage with interest - $ 720 per month
Condo fees , Say 0.65 per sq ft on 850 sqft 2bedroom - $552

Total might come to $ 1272 per month , I am wasting my $ 1150 per month in rent anyways

not sure if there are any other costs

You forgot to add..

Property Tax - 200-300$
Insurance - 50-100$
Utility - 100-150$

Also, Did you tell your Bank advisor that you are not going to put 20%, with 5% down payment, I guess maximum you can get 25yr amortization.

Advertising information edited out

CMHC
https://www.cmhc-schl.gc.ca/en/nhs/guidepage-strategy/help-and-resources

You earn a good salary. Now see what it is that you can afford as per the Calculations that are done by a Mortgage agent.:
https://www.moneyunder30.com/how-much-house-can-you-afford


There are good lenders and there are GREAT Lenders too. Check these websites and get to know them.
http://advancedmortgagesolutions.ca/home-purchase/home-purchase-calculators/

TRUE NORTH.:
https://www.truenorthmortgage.ca/mortgage-solutions/investment-properties

A test that is done to find out how much it will cost.:
http://www.truenorthmortgage.ca/tnm-calculators/payment-calculator.html


Hope this helps you find out what it is that you earn as a salary and what you can afford to pay to live in it comfortably for the duration of the mortgage.

FH.