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Client's Name
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Net Proceeds and Mortgage Requirements
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Sale/Purchase
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by Dennis Paradis, May 25, 2007
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Description
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Amount,$
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Notes
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Selling Price (sold home)
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510,000
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Example
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Your current address here
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Commission reduction
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12,750
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Net Price
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497,250
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Expenses:
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Real Estate Fees
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12,750
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2.50%
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GST on Real Estate
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765
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Lawyer Fees
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600
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Lawyer Disbursments
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300
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Moving
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2000
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Total Expenses:
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16,415
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Net Proceeds (before Mortgage)
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480,835
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Existing Mortgage
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182,000
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Net Proceeds (sold home)
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298,835
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This amount accounts for the expenses of closing sold home.
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Cost of Your New Home
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779,000
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Example
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Expenses of New Home Buy:
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Legal Fees
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1,000
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Land Transfer Tax (LTT)
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12,055
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Prov Tax on LTT - 8%
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964
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Title Insurance
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200
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Re-Key Locks
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100
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Total Expenses (new home)
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14,319
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These expenses may reduce the downpayment you have available
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Total Cost (new home)
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793,319
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Purchase Price + Expenses
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Minus Net Proceeds (sold home)
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298,835
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Minus Downpayment (cash on hand)
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172,000
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22% of Purchase Price before expenses of new home (172/779)
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No CMHC fees after 20% Downpayment - New as of Spring, 2007
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Downpayment less expenses
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157,681
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20.2% of Purchase Price with expenses of new home deducted from downpayment (172-14.3)/ 779
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Loan/Value %
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20.2%
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Assumes you have to reduce downpayment to cover the expenses of the new home.
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Expenses of Sold Home were deducted from the Net Proceeds of Sold Home
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Mortgage Required
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322,484
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Total cost of New Home minus Net Proceeds of Sold Home and minus Downpayment
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Your Mortgage Required is the same with expenses handled either way -
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1. Added to cost of new home, or, 2. A reduction of the downpayment.
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All expenses are estimates and your actuals may vary
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There may be additional expenses not itemized here
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