Car Project



Name: _______________________ Mark: /58

Final Task Part 3: Purchasing a Home

Today we are going to look for a home that you would like to purchase. Please make sure that the cost is realistic and it is in a location that you would like to live (

Part A: What are you looking for?

1. If you were to buy a home, what sort of features would you look for? Make a list of at least 10 features that you would want your house to have. For example, do you want a garage, a fireplace, a pool, a big kitchen, more than one bathroom? Anything like that would be considered a feature ( (10 marks)

2. Think about where you would like your house to be located. (4 marks)

a) What city would you like to live in? _______________________

b) Do you want a house in town or in the country? _____________________

c) Name a few places you would like to have close by, such as a grocery store, mall, school (list two that are most important to you.

________________________________ ________________________________

Part B: Finding a Home

1. Before you begin looking, please set a price range. (1 mark)

I am looking for a house that costs no more than $______________________________

2. Now the fun part, finding a home! (5 marks)

Please go to the website realtor.ca.

• Enter your city and any other features you would like, then hit GO.

• A map should appear with little blue dots as houses. Look through the areas and when you find one you like, you may click on it to see all of its features.

• Try to find a home that has the features you wanted, is in the right location and is within your price range.

• Once you pick you home, please complete the information below.

Location: _____________________________

Price: ________________________________

3. Why did you choose the home that you did? (2 marks)

4. What is your favourite feature of the home you chose? (2 marks)

Part C: The Mortgage

1. Assume you are able to afford a down payment of 20%. How much would your down payment be? (1 mark)

2. How much are you going to mortgage? (1 mark)

3. Assume current interest rates are approximately 4.94% on a five year fixed term, amortized over 25 years.

a) Calculate your monthly mortgage payment. (3 marks)

N

I%

PV

PMT (this is what you are finding)

FV

P/Y

C/Y

PMT: END

My monthly mortgage payment will be:

b) How much would you pay total in the first five years? (2 marks)

c) How much principal would you pay in the first five years? (2 marks)

d) How much interest would you pay in the first five years? (1 mark)

4. Mortgage interest rates can change sometimes suddenly, like in the 1980s. What would be your new monthly payment if interest rates all of a sudden shot up to 13%? (3 marks)

N

I%

PV

PMT (this is what you are finding)

FV

P/Y

C/Y

PMT: END

My new monthly mortgage payment will be:

b) How much would you pay total in the first five years? (2 marks)

c) How much principal would you pay in the first five years? (2 marks)

d) How much interest would you pay in the first five years? (1 mark)

e) Did the payment and the interest you paid increase by more than you thought it would? (2 marks)

Part D: Other Housing Expenses

1. Other than the mortgage payment, there are a lot of other expenses that come with owning a home. Try to make a list of at least 5 other expenses (think of bills, repairs, taxes). (5 marks)

2. Each city has its own rate for property taxes. Assuming your house is in Bradford, the rate is 1.14% of the value of your home (use the cost before you took off the down payment).

a) How much would you pay in property taxes each year? (2 marks)

b) If the city wants you to make quarterly payments, how much would each payment be? (1 mark)

Part E: Tips on Purchasing a Home

Make a list of at least six tips you would give someone who is about to purchase a home. (Think of things like, cost, location….) (6 marks)

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