Exam 7: The Finances of Housing

Opportunity costs of housing can refer to time and effort involved in finding and repairing a place to live along with lost interest earnings on security deposits and down payments.

Which of the following would increase the speed of equity growth for a homebuyer?

What is the purpose of subletting an apartment?

The gross debt service ratio is your monthly mortgage payment (including principal, interest, heating and taxes) as a percentage of your gross monthly income.

Refinancing of a mortgage is recommended when

Before signing a lease you should (as part of signing the lease)?

An advantage of renting an apartment is:

A lease always gives the landlord the right to:

Which of the following is not a common financial risk of home ownership?

Negotiating a purchase price for a home usually involves an offer and counteroffers.

Lenders commonly use a GDS ratio of 30% and a TDS ratio of 40% as guidelines to determine the amount you can comfortably afford for housing.

A disadvantage of renting an apartment is:

Which of the following is typically excluded from a lease agreement?

If you decide to purchase a condominium for potential benefits you are probably:

A cost associated with home buying would be

Financial guidelines suggest that you should "spend no more than 10 to 20 percent of your take home pay on housing".

Home improvements may contribute more to the value of the home than the cost of the renovations.

One significant drawback of home ownership is financial uncertainty.

Land transfer tax costs (for the purchase of a home)?

Lenders commonly use a GDS ratio of 50% and a TDS ratio of 60% as guidelines to determine the amount you can comfortably afford for housing.