Net worth statement
- Thread starter JoefromTO
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QUOTE (JoefromTO @ Aug 9 2009, 12:09 PM) I`m trying to find something to guide me to put together my Net worth Statement. Does anyone know where I can find one?
a simple spreadsheet is best. Update it at least once a year or perhaps semi-annually .. or whenever a major event occurs like: a big bonus cheque came in, a property was purchased, a loan was retired ... !
List all assets you own (house, condos, cars, stocks, RRSP, RESP, ..) , and all liabilities (CC, car loans, mortgages) .. then total it !
Keep a copy for future years .. always fun to look back a year or 3 or 7 .. (maybe not a year as it was likely a bit higher a year ago in early 2008 in many cases ..)
a simple spreadsheet is best. Update it at least once a year or perhaps semi-annually .. or whenever a major event occurs like: a big bonus cheque came in, a property was purchased, a loan was retired ... !
List all assets you own (house, condos, cars, stocks, RRSP, RESP, ..) , and all liabilities (CC, car loans, mortgages) .. then total it !
Keep a copy for future years .. always fun to look back a year or 3 or 7 .. (maybe not a year as it was likely a bit higher a year ago in early 2008 in many cases ..)
Thanks Thomas. In the case where I am refinancing a mortgage, won`t the bank require proof of everything? Also, when it comes to establishing the value on my primary residence which happends to be debt free, how do i do that? Also, how do I prove that my primary residence as well as investment properties belong to me? Would I use a current property tax assessments or do I have to produce the actual deeds?
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QUOTE (JoefromTO @ Aug 9 2009, 01:32 PM) Thanks Thomas. In the case where I am refinancing a mortgage, won`t the bank require proof of everything? Also, when it comes to establishing the value on my primary residence which happends to be debt free, how do i do that? Also, how do I prove that my primary residence as well as investment properties belong to me? Would I use a current property tax assessments or do I have to produce the actual deeds?
proof is on title, is it not ?
keep / attach most recent copies of: mortgages, tax assessments, tax filings, rent receipts, appraisals, CC statement ..
the PNW should accurately reflect what your worth .. proving it is another matter. So if you bought a house 10 years ago for $200,000 and you show it as $420,000 then that is OK .. even if no proof is available .. you might have a tax assessment that shows $390,000 .. and you may know that yours is worth a bit more than that .. bank will ask if they need proof .. but attach tax assessment and a note stating "many homes sell for more than that" or "here is a recent MLS report showing similar houses so I think $420,000 is a fair estimate .. s.th. like that as you obviously won`t appraise your house every 12 months!
The more backup docs the better .. you could refer to that in your spreadsheet in a column: See Appendix # 23, 25, and 28 .. and then label your appendices accordingly .. over time the one page doc will be a 4kg binder (or 2 !!)
proof is on title, is it not ?
keep / attach most recent copies of: mortgages, tax assessments, tax filings, rent receipts, appraisals, CC statement ..
the PNW should accurately reflect what your worth .. proving it is another matter. So if you bought a house 10 years ago for $200,000 and you show it as $420,000 then that is OK .. even if no proof is available .. you might have a tax assessment that shows $390,000 .. and you may know that yours is worth a bit more than that .. bank will ask if they need proof .. but attach tax assessment and a note stating "many homes sell for more than that" or "here is a recent MLS report showing similar houses so I think $420,000 is a fair estimate .. s.th. like that as you obviously won`t appraise your house every 12 months!
The more backup docs the better .. you could refer to that in your spreadsheet in a column: See Appendix # 23, 25, and 28 .. and then label your appendices accordingly .. over time the one page doc will be a 4kg binder (or 2 !!)
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QUOTE (JoefromTO @ Aug 9 2009, 12:32 PM) Thanks Thomas. In the case where I am refinancing a mortgage, won`t the bank require proof of everything?Also, how do I prove that my primary residence as well as investment properties belong to me? Would I use a current property tax assessments or do I have to produce the actual deeds?
Not necessarily, although if you`ve had it for a while your prior T1 General will show details. This can be important if you have properties where you`re not on title, only with a JV agreement. Betweent the agreement, your T776s and income filings you`ll show as the beneficial owner and that should be good enough. Your broker should help you make sure you have the right paperwork the first time.
Not necessarily, although if you`ve had it for a while your prior T1 General will show details. This can be important if you have properties where you`re not on title, only with a JV agreement. Betweent the agreement, your T776s and income filings you`ll show as the beneficial owner and that should be good enough. Your broker should help you make sure you have the right paperwork the first time.