Written by Lisa Grainger | http://www.lawandstyle.ca | Published December 9, 2010
Precedent asked certified financial planner Jason Heath of E.E.S. Financial Services in Markham, Ontario, to look at the couple’s needs and numbers.
“Using rough numbers, I figure you guys could be approved for an $800,000 mortgage quite easily,” Heath tells them. Reed’s jaw not-so-subtly hits the floor, but Heath isn’t finished: “That said, what a bank will approve and what’s in your best interest are often different things.”
Heath says the couple should buy only if they plan to live in the property for at least five years. That’s because transaction costs can add up quickly and negate the benefits of buying versus renting. read full article