Financing a Place to Live: An Intro to Housing Costs HIP4O

Conan Obrien Finding an Apartment https://www.youtube.com/watch?v=P8x1pPd1SgM

Considerations There are different ways we can finance a place to live We can rent or lease a place We can purchase a place We can pay room and board in someone else’s place We can live with family

Terminology There are many different and confusing terms which you need to understand when you are looking for a place to live

Renting/Leasing AFFORDABLE HOUSING: Housing where the occupant is paying no more than 30 percent of gross income for gross housing costs, including utility costs. APPLICATION: Apartment form stating your name employment may include credit worthiness. APARTMENT: a relatively self-contained housing unit in a building which is often rented out to a family or one or more people for their exclusive use. Sometimes called a flat. Some locales have legal definitions of what constitutes an apartment. ARREARS: Overdue rent ASSIGN: Transfer the unexpired portion of an apartment lease to a new tenant.

Renting/leasing EFFICIENCY APARTMENT: cheaper to rent than a one-bedroom apartment, because every living space--the kitchen, living room, and bedroom - are all contained in one room. A.k.a. "studio apartments". GUARANTOR: a person who is legally obligated to pay your rent in case you are unable to. Guarantors are used when the tenants do not make enough to meet the landlord's minimum salary requirements. LANDLORD: The owner of property, such as houses, rooms, or apartments, that is rented out to another. LEASE: A type of legal agreement establishing a property owner-tenant relationship An agreement, usually in writing, granting possession and use of property for a set period of time in exchange for rent. The tenant to whom the property is leased is called the LESSEE, and the landlord who owns the property is called the LESSOR.

Renting/leasing RENTAL AGREEMENT: A rental agreement is a contract between a tenant and a landlord that stipulates the length of the lease, rent amount, and other terms. SECURITY DEPOSIT: A security deposit is money that the tenant pays to the landlord. It provides monetary security to the landlord, in case of damage to the apartment or failure by the tenant to comply with the agreement (such as moving out before the lease ends). The tenant receives the deposit back at the end of the lease, minus any deductions for repairs / restoration.

Renting/leasing SUBLET: Agreeing to permit someone to use a rental property for a term less that the full term of the apartment lease, and to be paid for that permission, original leasee is still responsible for lease. TERM OF LEASE: The length of time that a lease shall be in effect; duration of obligation 6 months - 12 months. VACANCY: apartment units which are not occupied

Purchasing Agreement of Purchase and Sale - A legal agreement that offers a certain price for a home. The offer may be firm (no conditions attached), or conditional (certain conditions must be fulfilled before the deal can be closed). Amortization Period - The time over which all regular payments would pay off the mortgage. This is usually 25 years for a new mortgage, however can be greater, up to a maximum of 30 years. Appraisal - The process of determining the value of property, usually for lending purposes. This value may or may not be the same as the purchase price of the home.

Purchasing Appraisal Value - An estimate of the market value of the property. Canada Mortgage and Housing Corporation (CMHC) - The National Housing Act (NHA) authorized Canada Mortgage and Housing Corporation (CMHC) to operate a Mortgage Insurance Fund which protects NHA Approved Lenders from losses resulting from borrower default. Closed Mortgage - A mortgage agreement that cannot be prepaid, renegotiated or refinanced before maturity, except according to its terms.

Purchasing Closing Costs - Various expenses associated with purchasing a home. These costs can include, but are not limited to, legal/notary fees and disbursements, property land transfer taxes, as well as adjustments for prepaid property taxes or condominium common expenses, if any. Closing Date - The date on which the sale of a property becomes final and the new owner usually takes possession. CMHC or GEMICO Insurance Premium - Mortgage insurance insures the lender against loss in case of default by the borrower. Mortgage insurance is provided to the lender by CMHC or GEMICO and the premium is paid by the borrower.

Other options Room and board – a fee paid to a home owner to allow you to stay in their home and get meals Half room and board – room and one or two meals are provided Rooming house – rooms are rented, sometimes kitchen privileges come with the room

Tips for Renting https://www.youtube.com/watch?v=KcLAq_cNYX4