A Roof Over Your Head: Consumer Education on Renting and Homeownership
This educational module provides valuable insights into the costs and considerations associated with renting and buying a home. Covering topics such as rental agreements, landlord and tenant rights, insurance, and more, it equips individuals with essential information to make informed decisions regarding accommodation. Practical advice, legal considerations, and financial aspects are all addressed with the aim of empowering individuals in their housing choices.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
A Roof Over Your Head A Reality Choices Module Consumer & Corporate Education Service Alberta February 1, 2019
Agenda What Does A House Really Cost? Renting Your Roof Mortgage Talk Roommate Living Making An Offer Moving In: The Costs Buying Your Roof More Info 2
Before You Rent What kind of accommodation? Where? What does the law say? Read & understand the Rental Agreement Who will be responsible for repairs? Know who handles disputes in your community 4
A note about renting in a condominium 5
Rental Agreements What type of tenancy? (fixed term, month-to-month, week-to-week, etc.) What is included? What about pets? Who is responsible for grounds upkeep / repairs? Who would replace appliances? 6
Read the agreement. Understand the agreement. The Residential Tenancies Act defines your rights. 7
Landlord & Tenant Rights and Responsibilities How to end the tenancy? What if rent is late? How can the landlord evict you? What if you don t follow the rental agreement rules? What is the limit of rent increases? When do you get your security deposit back? What if the landlord believes you ve abandoned the premises? 8
Insurance Get it before it s too late. 9
Camera Clothing Musical Instruments Everything else Computer TV & Stereo Furniture 10
Personal Property Insurance Protects your stuff, and your liability Monthly insurance cheaper than replacement Replacement value endorsement Riders & Floaters Talk to an agent or broker Insurance Bureau of Canada 11
Fun? 13
Roommates All tenants must be on tenancy agreement Other occupants may be given 14 days to leave If tenant has left, other occupants may get 48 hours Those who sign hold the responsibility Utilities are tied to the signee s name Living as roommates requires trust 14
Roommates Two budgets: personal and shared Rent, utilities, cable, internet, food, cleaning supplies How to divide expenses fairly Decide all of this before you move in! 15
Moving Expenses Do It Yourself Hire Movers Truck rental fee Cost per kilometer Gas & Insurance More Pricey Comparison shop Do your homework 17
First months rent + security deposit Inspection report Trust account Deposit returned, minus: Damages Unusual cleaning Rent owed 18
Utility Hookups You may be asked for a deposit Keep records of who paid what Extra fee for discontinuing / reconnecting Another option: energy marketer Sometimes they may be included 19
Protects consumers, small businesses and farmers There to guide you to informed choices Power to investigate 20
Other Expenses Initial batch of groceries Furniture Bedding, towels, etc. Kitchen stuff Watch for extra charges 21
Item Estimated Cost Moving Expenses First Month s Rent Security Deposit Utility Hook-Up / Deposit Internet Power Heating Water Cable Staple Food Items Groceries Kitchen Utensils & Dinnerware Linens & Bedding Furniture + Any Delivery Charges Other Costs Total Moving-In Costs 22
Can You Afford To Buy A Home? Do you have a secure income? Are you prepared for the long-term commitment? Did you compare buying vs. renting? Have you looked into shorter vs. longer amortization periods? Do your research! 24
Some Helpful Tools FCAC Mortgage Calculator Rent Or Buy Calculator 25
Going Condo? 26
Long-Term Costs Up-Front Costs Appraisal of the home Home insurance Legal fees & disbursements Utility hook-ups Home inspections Mortgage payments Utilities Repairs Appliances Homeowners insurance Tools Decorating 28
Down Payment Money must be available 5-25% of the purchase price Larger payment = smaller mortgage Mortgage insurance 29
Making An Offer Inspect the house thoroughly (or hire someone) Offer must include: Name of buyer & seller Legal description of property Amount of offer Any extras to be included Any conditions to be met Date and time offer expires Closing date Condition of home A signed offer becomes a contract 30
Mortgage Conditions Length of amortization period Term of the actual loan Method of repayment Frequency of payments Fixed rate or variable rate Conventional or high ratio / open or closed Mortgage life insurance 32
Amortization Period Amortization = duration of the mortgage 5 to 25 years This will affect your monthly payment Mortgage $300,000 Amortization period (years) Monthly payment Total cost (assumes the interest rate remains the same) $380,076.00 $424,224.00 $452,077.20 $471,204.00 $520,906 Interest Rate 4.9 percent 10 15 18 20 25 $3,167.30 $2,356.80 $2,092.95 $1,963.00 $1,736.35 33
Method of Repayment / Payment Frequency Blended payments of principal & interest Early payments are more interest-heavy More payments means less interest $1,000 per month = $12,000 in a year $250 per week = $13,000 in a year 34
Fixed or Variable? 35
Types of Mortgage Conventional Mortgage: up to 75% High-Ratio Mortgage: more than 75% Open Mortgage: make additional payments Closed Mortgage: no extra payments / lower rates Paying down the principal can be a good thing 36
For More Info Office of the Utilities Consumer Advocate Toll-Free in Alberta: 310-4UCA www.ucahelps.alberta.ca Consumer Contact Centre Edmonton: 780-427-4088 Toll-Free in Alberta: 1-877-427-4088 Insurance Bureau of Canada Edmonton: 780-423-2212 Toll-Free: 1-800-377-6378 www.ibc.ca Canada Mortgage & Housing Corporation Toll-Free: 1-800-668-2642 www.cmhc-schl.gc.ca 38
For More Info Security Deposit Interest Calculator www.servicealberta.ca/interest- chart.cfm Industry Canada s Rent or Buy Calculator https://ic.gc.ca/app/scr/oca- bc/ssc/house.html Service Alberta Tipsheets: Information for Landlords Information for Tenants Electricity & Natural Gas Contracts Sub-Meters for Rental Units Renting a Mobile Home Site Purchasing a Condominium CMHC s Homebuying Step By Step www.cmhc- schl.gc.ca/en/buying/homebuying-in- canada-a-step-by-step-guide 39
