Math makes mortgage management easy

Today in the Globe and Mail’s Report on Business, Rob Carrick, the personal finance writer, had some valuable advice for home buyers and created the Real Life Ratio and chart.
He argues that when financial institutions award your mortgage financing they do not know necessarily what your future plans look like.
Yes, they review with you your current assets and liabilities but they don’t ask about your future plans. For example, does your future see a plan for more children? If this is the case then factoring in other costs such as day care, sports activities, vacations, home improvements, etc are  all important considerations that may not have surfaced on first review.
Home ownership is a way of preparing for your future to be sure, but smart pre planning will ensure that those plans are well laid and secure regardless of life’s surprises.
I have attached Rob’s article and the work sheet and if you are thinking about a new home, you may find some time over the week to complete the chart and see what your Real Life Ratio is. I find that I make  better with decisions with all the information in front of me.
Since Ottawa has experienced several months in Buyer’s Market territory, this might be a perfect opportunity to plan out your future real estate investment .the more information you have at your finger tips the better your real estate decisions will be.

To read the article and view the attachment please visit here.