So What is Affordable Housing?

Rarely available Freehold end unit offered for sale: $189,900.00

855 Grenon Ave Unit # 1 Ottawa / West Britannia – All brick semi-detached/row home built 1975. Common elements fee of $55 per month for Snow clearing and grass and tree care. Parking adjacent to unit. Not a condominium!

Freehold, three bedroom, two bath, end unit with 5 appliances. Private, west facing, fenced back yard. Mature Jack Pine trees. Finished basement with lavatory hook up.( was once a hair cutting salon ) High ceilings. Five Appliances included. Parquet hardwood on first and second floors. Newer windows, Gas Furnace 2004. Best value in the area!

So what is affordable housing?
Let’s look at the numbers for today’s interest rate which is 2.75%

A minimum of 5% down payment is required to purchase           = $9,450.
Closing costs would be needed out side of the down payment
which would cover Lawyers fees and disbursements                    = $3,780.
If you are a first time buyer you qualify for a provincial tax credit = $2,000.

Total amount needed to purchase up front cash is                      =$11,230.

A Canada Housing and Mortgage insurance fee would be added to your mortgage amount to cover the protected amount that equals about 15% of the purchase ( This fee covers the remaining part of the conventional mortgage amount or 20% down payment.  5% was calculated above)

The monthly mortgage payment would be   $847. 
Taxes calculated monthly would be             $166.
Monthly association fee for grass and snow  $55.
Insurance monthly would be about                 $84.
Monthly Heat and light would be about         $150.

Total monthly living cost would be             $1,302.

The average of 82 rental listings in Ottawa today, excluding apartment building style living is  $1,992. per month with the lowest rent at $1,925 per month.

With low interest rates, stable world markets, it is a good choice to purchase a home instead of renting.