How do I figure out my "net worth"?

 

How do I figure out my ‘Net Worth’?

 

When you are looking at whether you would qualify for a mortgage for your first home purchase, you may hear the words ‘net worth’ thrown around. Well, what exactly does it mean? Your net worth is basically a number derived when you subtract all your liabilities (debts) you have from your assets. Your assets can be made up of savings, investments and any property that you own including vehicles.

 

If you want to figure out approximately what your net worth is, here is a little chart to help you find your way. (Also available to download in PDF format)

 

Assets

Asset amounts

Liability amounts

Net worth calculation

Property

$

 

 

Vehicles

$

 

 

Balance in your savings and chequing accounts

$

 

 

Bonds and savings certificates

$

 

 

Other bank accounts

$

 

 

RRSP usable for down payments

$

 

 

Other RRSPs

$

 

 

Stocks, mutual funds, investments

$

 

 

Other assets

$

 

 

Total Assets

 

 

$

Liabilities

 

 

 

Loans for property

 

$

 

Car Loans

 

$

 

Personal loans or lines of credit

 

$

 

Credit card debt

 

$

 

Student loans

 

$

 

Other

 

$

 

Total Liability

 

 

$

Net worth

 

 

$

 

Take your assets, subtract the liabilities and you have you net worth!

 

The lending institution that you go to will use this information to determine how much of a down payment you can afford will use the net worth to figure that out.

 

What if my net worth is a negative number?

 

If your net worth is a negative number then it is unlikely that you will qualify for a mortgage. However, we suggest that you make a visit to your bank and talk to them about your options. Perhaps they can help you create a payment plan that balances your budget and will have your net worth on the rise.

 

Best of luck and if you have any questions, the professionals here at EXIT Realty Matrix – Tessier Team are always here to help!

 

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