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Buying a Condominium vs Renting at Van Norman
  Condominium  (5% Down)
950 sq. ft.
2 Bedrooms
325 Van Norman
950 sq. ft.
2 Bedrooms $900/month
plus utilities
Condominium  (10% Down)
950 sq. ft.
2 Bedrooms
325 Van Norman
950 sq. ft.
2 Bedrooms $900/month
plus utilities
         
Purchase Price1       135,000.00                    -         135,000.00                    -  
Down Payment            6,750.00                    -           13,500.00                    -  
Legal Fees and Closing Costs            2,775.00                    -              2,775.00                    -  
Mortgage Default Insurance (CMHC)            3,526.88                    -              2,430.00                    -  
Invested by Renter @ 3.99% (5 yr. GIC)                        -          9,525.00                        -       16,275.00
Mortgage @ 6.85%       131,776.88                    -         123,930.00                    -  
         
Mortgage Payment2               910.82                    -                 856.58                    -  
Condo Fees               180.00                    -                 180.00                    -  
Rent                        -             900.00                        -             900.00
Property Tax3               207.58                    -                 207.58                    -  
Water Heater/Furnace Rental Charges                 45.00

 n/a 

                45.00

 n/a 

Invested by Renter each month @ 2.5%                         -             443.40                        -             389.16
Total Monthly Payments4            1,343.40        1,343.40            1,289.16        1,289.16
         
Total Payments after 5 years5         90,128.92     90,128.92         93,624.52     93,624.52
         
Condo sold for 105% of purchase price       141,750.00                    -         141,750.00                    -  
Less 6% commission and legal fees         10,005.00                    -           10,005.00                    -  
Less Mortgage Owing       119,741.26                    -         112,611.32                    -  
Cash          12,003.74     39,905.56         19,133.68     44,695.79
         
Condo sold for 110% of purchase price       148,500.00                    -         148,500.00                    -  
Less 6% commission and legal fees         10,410.00                    -           10,410.00                    -  
Less Mortgage Owing       119,741.26                    -         112,611.32                    -  
Cash          18,348.74     39,905.56         25,478.68     44,695.79
       
1. Closing costs include appraisal fees and land  transfer tax but do not include GST on a brand new condominium.
2. Does not include any premium for life insurance on mortgage.
3. Assumes assessment equal to purchase price, a tax rate (municipal + education) of 1.845144% (Thunder Bay 2006) and NO increase in taxes during the first five years.
4. Does not include insurance or utility costs.
5. Does not include purchase and/or maintenance of appliances, or any maintenance or repair costs for the dwelling.

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Last modified: 10/11/15