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Net Proceeds (Example)


Client's Name

Net Proceeds and Mortgage Requirements

Sale/Purchase

by Dennis Paradis, May 25, 2007

Description

Amount,$

         Notes
     
  Selling Price (sold home) 510,000

         Example

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