Sale of a Home

Example of Sale

Information:

Possession date:June 1
Price:$200,000.00
Mortgage:
(seller's existing to pay out,
Interest rate is 5%)
$150,000.00
Property Taxes $2,400.00
Interim Loan
(seller is buying a new home, borrows
against equity at 7% interest)
$10,000.00
Land Titles delay21 days

Calculations:

Sale Price:$200,000.00
Less:
Mortgage Owing:$150,000.00
Expenditures:
Legal Fee$500.00
Real Estate Commission 8,000.00*
Final Water Billing75.00*
Misc. Disbursements300.00*
Tax and Title Searches50.00
GST on * ($8,375.50)418.75
RST on Legal Fee ($500)40.00
Subtotal$9,383.75

Adjustments

Property taxes due June 30
(credit purchaser 5 months)
($2,400.00 ÷ 12 x 5)
$1,000.00
Insert on the mortgage
$150,000.00 x 4% x 21/365
$345.21
Interest on interim loan(if applicable)
$10,000.00 x 7% x 21/365
$40.27
Combined Adjustments$1,385.48
Interest earned:
($200,000.00 - $3,000.00 deposit)
$197,000.00 x 4% x 21/365
($453.37)
Subtotal Adjustments
($1,385.48-$453.37)
$932.11
Total payments to be made
($150,000 + $9,383.75 + $932.11)
$160,315.86
Net Equity
($200,000 - $160,315.86)
$39,684.14