New Home Purchase Budget

Jordan and I have done a lot of budget crunching around our upcoming New Home Purchase.

We have broken down the total price with nearly every consideration we can think of - I didn't want to just come out and say 'our new house will cost x' - so here are all the details:

The upgrades we have chosen to go with are those that Jordan and I think will impact our lives in a postive way, the most.  Not only that, they are all inteded to increase the resale value as well. 

We have a general 'design center' category because as we have updated the house to include a gas range, we'll need to upgrade the stove as well.  We also wanted to pad a bit in case there is anything we have forgotton.

I'm 100% positive that the GST Rebate number is not correct. It's a best guess based on reading and some information provided by the seller.  If anyone knows how to accuratly calculate this, please let me know.  Otherwise, we'll find out on Thursday when we meet with the Selling Agent again.

The CMHC insurance rate is 2.95% based on a 30 year amortization

The above numbers are not yet set in stone, but this is what we are comfortable with.  We meet with the Selling Agent again on Thursday and then will have a few appointments in the design center (otherwise called the money pit) before things are 100% confirmed.

So, how does that impact our monthly payments?


Jordan and I will set up our payments on a weekly basis rather than monthly which will of course reduce the interest paid - but I prefer to use mortgage calculators based on monthly because the monthly amont is higher (when there are four weeks in a month).

While we actually have a current five year fixed rate held at 3.39% - it was a 120 day hold and we are looking at taking posession around September/October -quite a ways a way.  Our Mortgage Broker can extend the hold, but not for a years time.  Once we have our purchase agreement signed, she'll be able to secure a longer term rate (which is way I did the calculations with a higher interest rate).

While we have a fixed rate hold - that is really for back up in case the market significantly changes - we're keen on taking a variable rate.  Our plan is to set up our weekly payments and then round up to $1,500 a month.  We'll put the excess in a separate ING account and then if/when variable rate increases we just adjust how much is going into the ING account - so were effectivly always 'paying' the same amount.  At the end of each year, we'll do a lump sum payment of whatever is left in the account.

Here is what our budget will look like:


You might notice a couple of changes from our 'normal' budget.  Other then house insurance and property taxes and of course an increased utility payment - we have also accounted for an increased gas bill (because of location where we are building).  While we budget for about $1300/month for our general monthly expenses (on the credit card) we've been averaging $1600-$2000 - so I updated this budget to be more realistic.  We've also chosen to try getting rid of our allowances.

While I know that you're supposed to budget for what you have, not what you will have - Jordan and I are also both expecting raises between now and when we take possession.  So while it's a bit tight, keep in mind that we're padding the house payment, padding our general spending and will be making more money.  A few have asked, so I'll share that I'm also looking for a new home for my horse - while this is not a decision I have made based on our financials, it's one that will impact them.

..phew...okay, so that was a realy long post! 

I would love to hear from other who have build or bought recently and have any comments/concerns - any who haven't, I'd love your questions!


9 comments:

  1. You are so organized and with it. I am so impressed.

    ReplyDelete
  2. Your utilities budget is pretty close. I live in a 2300 sq. ft. home (for reference) and here's how the utilities break down:

    Gas - $150 per month (yours may be higher due to the gas range and BBQ hook up)
    Electricity - $150 per month
    Water/Garbage/Sewage - $75 per month

    I also pay another $175 for cable, internet and home phone (we hardly go out, so it's our entertainment budget), but I'm not sure if you have those things since I don't see them on your list.

    ReplyDelete
  3. @ Jolie - Thanks!!

    @ Shenanigans - The $350/month includes utilities and internet/home phone/cable - I think it should be pretty close too. High in the summer but low in the winter.

    We've been living in a poorly insulated (single window-paned) house for the last four years and the average utility bill is $250 plus another $100 for our phone/internet/cable - that's where I got the number from.

    ReplyDelete
  4. You are so organized with your expenses! It will be interesting to see how your budget lines up with your actual expenses once you move into your house.

    It's good to know too, because BF and I are looking at buying our own place by the end of this year, and we are also entertaining the possibility of buying new. But in Vancouver, that might not be possible. :)

    ReplyDelete
  5. Very exciting. When will the house be built? Great organization!

    ReplyDelete
  6. Very nice Jessie. I'm sad to read about your horse and wonder about her a lot actually. It will free up quite a bit of room in your budget, but I know that will be a very hard thing for you to do.

    Are you considering up setting up a home "replacement fund" for things like water heaters/fridge/new roof/etc?

    ReplyDelete
  7. I'm really interested to follow your house experience. Now that we're married, we're *considering* buying in July 2012, but we go back and forth with it.

    ReplyDelete
  8. That's exciting you're building from the ground up!

    My boyfriend and I bought a place and we gutted the house. Sometimes there might be unexpected surprises (though you might not have that issue since you're buildling from scratch), as we had budgeted for $2500 for the wiring electricty etc. when it ended up costing $8400! (Had to put in a gas hook up, the plumbing throughout the house was found to be rusting and needed to be replaced).

    I like how you broke it all down!

    ReplyDelete
  9. Congratulations! I bought my first place last May, and I have loved every bit of renovating/fixing it up. My only "adventure" was during the financing portion as my place was a foreclosure and I purchased it from the government (ie. lots of changed deadlines and little control from my end of things). While it can get a little stressful towards closing time, just trust in the process and watch every number that is projected/written down. Most of all, enjoy the process and take lots of pictures!!! :)

    ReplyDelete

Hi! Thank you for stopping by and leaving a message.

Links ♥