# Major Purchase Plan: [Home, car or other large purchase]

> A plan for deciding whether, when and how to make a large purchase
> such as a home or a car: what you need, what you can afford, how much
> to save first, what the item really costs to own over the years, how
> it compares with renting or leasing, how you will pay for it, and the
> timeline to the purchase date. It uses plain language, standard
> formulas and a fully recomputed example for the fictional household
> Drew and Casey Morgan, a renting couple buying their first home (they
> are separate from the Ellison household used in the other personal
> templates). Affordability checks are framed around the
> lender-side rules on assessing a borrower's ability to repay (US
> Regulation Z, 12 CFR 1026.43; EU Directive 2014/17/EU Article 18 and
> Directive (EU) 2023/2225 Article 18), but the limits you set are your
> own. Replace every `[bracketed]` value and every row marked *Example*.
> This is a document format for organising your own information, not
> financial, tax, legal or investment advice. Projections are
> illustrative.

<!--
Guidance: How to use this template
- Start this plan 6 to 24 months before the purchase. The savings plan
  in section 6 needs time to work.
- Fill sections 3 to 5 before you visit sellers or dealers. Price
  anchors from a showroom or an open house make it hard to set limits
  afterwards.
- Use total cost of ownership (section 7), not the sticker price, to
  compare options. A cheaper item can cost more to run.
- When you have financing offers, compare them in Loan Comparison
  (`personal/loan-comparison`) and copy only the chosen result into
  section 10.
- Related documents: Budget (`personal/budget`), Emergency Fund Plan
  (`personal/emergency-fund-plan`), Net Worth Statement
  (`personal/net-worth-statement`), Financial Goals
  (`personal/financial-goals`), Financial Plan
  (`personal/financial-plan`), Insurance Review
  (`personal/insurance-review`), Moving Checklist
  (`personal/moving-checklist`) and Home Maintenance Log
  (`personal/home-maintenance-log`).
-->

## Document control

<!-- Guidance: Name the purchase, the target date and who must agree. Large purchases are household decisions: list every person whose money or home is affected. -->

| Field | Value |
|---|---|
| Document ID | [MPP-001] |
| Version | [0.1] |
| Status | [Exploring / Saving / Shopping / Decided / Purchased / Abandoned] |
| Owner | [@person-1] |
| Approvers/reviewers | [@person-2], [optional trusted adviser] |
| Last updated | YYYY-MM-DD |
| Classification | Private (household) |
| Purchase | [Home / Car / Other: description] |
| Target purchase date | YYYY-MM |
| Price range considered | [currency] [low] to [high] |
| Currency and unit | [currency], amounts rounded to 2 decimals unless stated |

### Approvals

| Role | Name | Decision | Date |
|---|---|---|---|
| Household member | [Name 1] | [Agree / Disagree] | YYYY-MM-DD |
| Household member | [Name 2] | [Agree / Disagree] | YYYY-MM-DD |

### Revision history

| Version | Date | Author | Change |
|---|---|---|---|
| 0.1 | YYYY-MM-DD | [@person-1] | First draft: needs and budget |
| 0.2 *(Example)* | 2025-10-25 | Casey Morgan | Savings plan started |
| 1.0 *(Example)* | 2026-10-25 | Drew Morgan | Shortlist, cost of ownership and financing added |

## Contents

1. [Purpose and decision summary](#1-purpose-and-decision-summary)
2. [Key terms in plain language](#2-key-terms-in-plain-language)
3. [Needs, wants and deal-breakers](#3-needs-wants-and-deal-breakers)
4. [Where we stand today](#4-where-we-stand-today)
5. [Affordability check](#5-affordability-check)
6. [Savings plan for the upfront cash](#6-savings-plan-for-the-upfront-cash)
7. [Total cost of ownership](#7-total-cost-of-ownership)
8. [Buy, rent or lease](#8-buy-rent-or-lease)
9. [Options and shortlist](#9-options-and-shortlist)
10. [Financing plan](#10-financing-plan)
11. [Timeline](#11-timeline)
12. [Risks and contingencies](#12-risks-and-contingencies)
13. [Decision record](#13-decision-record)
14. [After the purchase](#14-after-the-purchase)
15. [Local terms](#15-local-terms)
16. [References](#16-references)
17. [Standard and licence note](#standard-and-licence-note)

## 1. Purpose and decision summary

<!-- Guidance: Write the one-paragraph answer here once the plan is done, so a reader sees the decision first. Until then, write the question you are trying to answer. -->

| Item | Value |
|---|---|
| The question | [Should we buy X, by when, and within what budget?] |
| Why now | [Life event, current item failing, price or rate window] |
| What happens if we wait | [Cost or risk of delay] |
| Decision summary | [Filled in at the end: buy / wait / rent / lease, budget, date] |

*Example:* The Morgans rent a two-bedroom flat for USD 2,100 a month.
They want a three-bedroom home near Casey's office and expect to stay
about 7 years. Their question: can we buy a home of up to USD 375,000
by October 2026 without touching our emergency fund, and is buying
cheaper than renting over 7 years? Summary after completing this plan:
buy, budget USD 375,000, close in November 2026, financing from offer
OFR-002 in the Loan Comparison.

## 2. Key terms in plain language

<!-- Guidance: Read once. The rest of the plan uses these meanings. -->

| Term | Meaning in this plan |
|---|---|
| Down payment (deposit) | The part of the price you pay from your own money. The rest is borrowed. |
| Upfront cash | Down payment plus purchase costs: taxes on purchase, legal and registration fees, loan fees, inspections and moving. |
| Gross monthly income | Income before tax and deductions, per month. Many lenders use it for ratios. |
| Net (take-home) income | Income after tax and deductions; what you can actually spend. Your own budget should use this. |
| Housing cost ratio | Monthly housing costs divided by gross monthly income. |
| Debt-to-income ratio (DTI) | All monthly debt payments, including the new one, divided by gross monthly income. |
| Total cost of ownership (TCO) | Everything the item costs you while you own it: financing, running costs, upkeep, insurance, taxes and loss in value, minus what you get back when you sell. |
| Depreciation | The fall in an item's value over time. Cars usually lose value; homes may gain or lose. |
| Opportunity cost | What your money could have earned elsewhere if you had not spent it on this purchase. |
| Sinking fund | Money set aside regularly for a known future cost, such as a roof or new tyres. |
| Lease | Paying to use an item for a fixed period without owning it at the end, unless you buy it then. |

## 3. Needs, wants and deal-breakers

<!-- Guidance: Separate what you must have from what you would like. The pitfall is letting nice-to-haves push the price above your limit one feature at a time. -->

| ID | Requirement | Type | Why | Who asked |
|---|---|---|---|---|
| REQ-[NNN] | [Requirement] | [Need / Want / Deal-breaker] | [Reason] | [Name] |
| REQ-001 *(Example)* | Three bedrooms | Need | Home office for Drew, room for a child | Both |
| REQ-002 *(Example)* | Commute under 40 minutes to Casey's office | Need | Daily commute | Casey |
| REQ-003 *(Example)* | Garden | Want | Quality of life | Drew |
| REQ-004 *(Example)* | Flood-zone property | Deal-breaker | Insurance cost and risk | Both |
| REQ-005 *(Example)* | Major renovation needed | Deal-breaker | No savings for it in the first 2 years | Both |

Write down the item you would buy if money were no object, then the
minimum version that meets every need. The gap between them is where
your budget decisions sit.

## 4. Where we stand today

<!-- Guidance: Use current figures from your bank statements and budget. Keep the emergency fund out of the money available for the purchase. -->

| Item | Amount | Source |
|---|---|---|
| Gross monthly income (household) | [currency] [amount] | Pay slips, tax return |
| Net monthly income | [currency] [amount] | Bank statements |
| Current monthly essential costs | [currency] [amount] | Budget (`personal/budget`) |
| Existing monthly debt payments | [currency] [amount] | Debt Payoff Plan (`personal/debt-payoff-plan`) |
| Emergency fund (ring-fenced) | [currency] [amount] | Emergency Fund Plan (`personal/emergency-fund-plan`) |
| Savings available for this purchase | [currency] [amount] | Savings account |
| Monthly amount we can add to purchase savings | [currency] [amount] | Budget surplus |
| *Example:* gross monthly income | USD 11,500 | Both salaries |
| *Example:* existing debt payments | USD 600 (car USD 380, student loan USD 220) | Lender statements |
| *Example:* emergency fund | USD 30,000, ring-fenced | High-yield savings account |
| *Example:* savings for the purchase | USD 60,000 on 2025-10-25 | Separate savings account |

## 5. Affordability check

<!-- Guidance: Compute the ratios both lenders and you will look at. Lenders and countries set their own limits; your limit should come from your budget. The pitfall is treating a lender's maximum as a target. -->

$$
\text{Housing cost ratio} = \frac{\text{Monthly housing cost}}{\text{Gross monthly income}}
\qquad
\text{DTI} = \frac{\text{Monthly housing cost} + \text{Other monthly debt payments}}{\text{Gross monthly income}}
$$

For a home, monthly housing cost includes loan principal and interest,
property tax, home insurance, any mortgage insurance and any owners'
association or service charge. For a car, use the loan or lease
payment, insurance, fuel or charging, and parking.

| Item | Our figure | Calculation |
|---|---|---|
| Loan principal and interest | [amount] | From Loan Comparison |
| Property tax per month | [amount] | Yearly tax / 12 |
| Insurance per month | [amount] | Yearly premium / 12 |
| Other housing charges | [amount] | [Service charge, mortgage insurance] |
| Monthly housing cost | [amount] | Sum |
| Housing cost ratio | [%] | Housing cost / gross income |
| DTI | [%] | (Housing cost + other debts) / gross income |
| *Example:* principal and interest | 1,774.61 | USD 300,000, 30 years, 5.875% (OFR-002) |
| *Example:* property tax | 343.75 | 375,000 x 1.1% / 12 (assumed local rate) |
| *Example:* home insurance | 116.67 | 1,400 / 12 |
| *Example:* monthly housing cost | 2,235.03 | 1,774.61 + 343.75 + 116.67 |
| *Example:* housing cost ratio | 19.4% | 2,235.03 / 11,500 |
| *Example:* DTI | 24.7% | (2,235.03 + 600) / 11,500 |

Lenders must assess whether you can repay before lending: in the US,
Regulation Z section 1026.43 sets minimum standards for most loans
secured by a dwelling; in the EU, Article 18 of Directive 2014/17/EU
(mortgages) and Article 18 of Directive (EU) 2023/2225 (consumer
credit) require a creditworthiness assessment. Each lender applies its
own ratio limits on top. Ask lenders for their limits in writing
rather than relying on rules of thumb.

Your own test is the budget: after the new housing cost, can you still
pay essential costs, keep saving for retirement and refill the
emergency fund? Write the answer:

| Test | Result |
|---|---|
| Budget still balances with new costs | [Yes / No, gap of amount] |
| Retirement saving continues at the planned rate | [Yes / No] |
| Emergency fund untouched after purchase | [Yes / No] |
| Payment still affordable if one income stops for 3 months | [Yes, from emergency fund / No] |
| *Example* | Yes to all four; the Morgans cut their holiday budget by USD 150 a month |

## 6. Savings plan for the upfront cash

<!-- Guidance: Set the upfront cash target first, then work out the monthly saving that reaches it by the target date. Keep this money in a safe, accessible account, not in volatile investments, if the purchase is less than a few years away. -->

Target upfront cash = down payment + purchase costs + loan fees +
moving and first repairs.

If you already have savings $S_0$ earning a monthly rate $i$, after
$n$ months they grow to $S_0 (1+i)^n$. The monthly saving $D$ needed
to reach the target $T$ is:

$$
D = \bigl(T - S_0 (1 + i)^{n}\bigr) \cdot \frac{i}{(1 + i)^{n} - 1}
$$

| Item | Amount |
|---|---|
| Down payment | [amount] |
| Purchase taxes and legal costs | [amount] |
| Loan fees and points | [amount] |
| Moving, furniture, first repairs | [amount] |
| Target upfront cash $T$ | [amount] |
| Savings today $S_0$ | [amount] |
| Months to target $n$ | [months] |
| Savings rate (yearly) | [%] |
| Monthly saving needed $D$ | [amount] |

*Example:* The Morgans set $T$ = USD 82,500 (USD 75,000 down payment
plus USD 7,500 loan fees and point; moving costs come from the monthly
budget). On 2025-10-25 they held $S_0$ = USD 60,000 in a savings
account paying 3.5% a year (monthly rate 0.035 / 12). After 12 months
that grows to USD 62,134.02, leaving USD 20,365.98 to save. The
monthly saving needed is USD 1,670.11. They automated a transfer of
USD 1,675 on each payday.

Savings progress log:

| Month | Planned balance | Actual balance | On track? | Note |
|---|---|---|---|---|
| YYYY-MM | [amount] | [amount] | [Yes / No] | [Note] |
| 2026-04 *(Example)* | 71,181 | 71,950 | Yes | Bonus added |

Check of the planned balance: six monthly transfers of USD 1,675 at the end of each month from November 2025, on USD 60,000 earning 3.5% a year compounded monthly, give 71,181.25. Use the transfer you actually automated (1,675), not the rounded-down requirement (1,670.11), so that the log measures the plan you are following.

## 7. Total cost of ownership

<!-- Guidance: Add up every cost over the period you expect to own the item, and subtract what you get back when you sell. Use the same period for every option. State every assumption so you can test it. -->

$$
\text{TCO} = \text{Upfront costs} + \sum \text{Running costs} + \text{Financing costs} - \text{Net resale value}
$$

### 7.1 Home: example over 7 years

Assumptions *(Example)*: price USD 375,000; loan USD 300,000 at 5.875%
over 30 years; property tax 1.1% of price per year; insurance USD
1,400 per year; maintenance 1% of price per year (USD 3,750); value
grows 3% a year; selling costs 5% of the sale price. The loan balance
comes from the balance formula in Loan Comparison. All figures are
illustrative.

| Cost line | Calculation | Amount (USD) |
|---|---|---|
| Down payment | Own money | 75,000.00 |
| Loan fees and point | OFR-002 | 7,500.00 |
| Loan payments, 84 months | 1,774.61 x 84 | 149,067.24 |
| Property tax, 84 months | 343.75 x 84 | 28,875.00 |
| Insurance, 7 years | 1,400 x 7 | 9,800.00 |
| Maintenance, 7 years | 3,750 x 7 | 26,250.00 |
| Total cash paid out | Sum | 296,492.24 |
| Sale price after 7 years | 375,000 x 1.03^7 | 461,202.70 |
| Selling costs | 5% of sale price | 23,060.13 |
| Loan balance repaid at sale | Balance after 84 payments | 268,313.75 |
| Net proceeds from sale | 461,202.70 - 23,060.13 - 268,313.75 | 169,828.82 |
| Net cost of owning for 7 years | 296,492.24 - 169,828.82 | 126,663.42 |

### 7.2 Car: example over 5 years

Assumptions *(Example)*: price USD 32,000; USD 12,000 paid in cash;
USD 20,000 borrowed at 6.9% over 60 months (payment USD 395.08); value
after 5 years USD 14,000; 12,000 km a year.

| Cost line | Calculation | Amount (USD) |
|---|---|---|
| Depreciation | 32,000 - 14,000 | 18,000.00 |
| Loan interest | 395.081 x 60 - 20,000 (unrounded payment) | 3,704.86 |
| Fuel or charging | 1,800 x 5 | 9,000.00 |
| Insurance | 1,200 x 5 | 6,000.00 |
| Maintenance and tyres | 700 x 5 | 3,500.00 |
| Registration and road tax | 250 x 5 | 1,250.00 |
| Total cost of ownership | Sum | 41,454.86 |
| Per month | 41,454.86 / 60 | 690.91 |
| Per km | 41,454.86 / 60,000 | 0.69 |

Note that the car TCO counts depreciation instead of the full price,
because you get the resale value back. It does not count the interest
the USD 12,000 could have earned elsewhere; add an opportunity cost
line if that matters to you.

## 8. Buy, rent or lease

<!-- Guidance: Compare the alternatives over the same period with the same assumptions. The answer is very sensitive to the holding period, price growth and investment return, so test at least two scenarios. -->

### 8.1 Home: buy versus keep renting, example over 7 years

Assumptions *(Example)*: rent USD 2,100 a month rising 3% a year; if
they keep renting, the Morgans invest the USD 82,500 upfront cash at
4% a year. To keep the example simple, it does not invest the monthly
difference between owning and renting costs. Owning costs USD 2,547.53
a month in the first year (1,774.61 + 343.75 + 116.67 + 312.50)
against rent of USD 2,100 rising 3% a year, so a renter would also
have that difference to invest. This simplification favours buying by
about USD 4,200 in the base case (the advantage falls from about
40,366 to about 36,150); state the direction of any shortcut like this
next to the result.

| Line | Calculation | Amount (USD) |
|---|---|---|
| Total rent over 7 years | Sum of 2,100 x 12 x 1.03^y for y = 0 to 6 | 193,094.05 |
| Investment growth on USD 82,500 | 82,500 x 1.04^7 - 82,500 | 26,064.37 |
| Net cost of renting | 193,094.05 - 26,064.37 | 167,029.68 |
| Net cost of owning (section 7.1) | | 126,663.42 |
| Difference in favour of buying | 167,029.68 - 126,663.42 | 40,366.26 |

Scenario table (fill in your own reruns):

| Scenario | Price growth per year | Holding period | Investment return | Cheaper option |
|---|---|---|---|---|
| Base *(Example)* | 3% | 7 years | 4% | Buy |
| Flat prices *(Example)* | 0% | 7 years | 4% | [Rerun and record] |
| Early move *(Example)* | 3% | 3 years | 4% | [Rerun and record] |
| [Your scenario] | [%] | [years] | [%] | [Buy / Rent] |

Short holding periods usually favour renting, because buying and
selling costs are paid only once and need years to be spread out.

### 8.2 Car: buy, finance or lease

| Option | Upfront | Monthly | End of term | 5-year cost | Notes |
|---|---|---|---|---|---|
| Pay cash | [amount] | [running costs] | Own the car | [amount] | Uses savings |
| Finance | [amount] | [payment + running costs] | Own the car | [amount] | See Loan Comparison |
| Lease | [amount] | [lease + running costs] | Return or buy | [amount] | Mileage limits, wear charges |
| Finance *(Example)* | 12,000 | 395.08 + running | Own, worth about 14,000 | 41,454.86 (TCO) | Chosen baseline |

## 9. Options and shortlist

<!-- Guidance: Score each option against your needs and wants from section 3. Remove any option that fails a deal-breaker before scoring. Weights must sum to 100%. -->

| Criterion | Weight | Option 1 | Option 2 | Option 3 |
|---|---|---|---|---|
| [Need or want] | [%] | [score 1 to 5] | [score] | [score] |
| Weighted score | 100% | [sum] | [sum] | [sum] |

| Criterion *(Example)* | Weight | OPT-001 Maple St | OPT-002 Birch Ave | OPT-003 Cedar Ct |
|---|---|---|---|---|
| Commute | 30% | 4 | 5 | 3 |
| Condition (repairs needed) | 25% | 4 | 3 | 5 |
| Price versus budget | 25% | 4 | 3 | 5 |
| Garden | 10% | 5 | 2 | 3 |
| Neighbourhood | 10% | 4 | 4 | 3 |
| Weighted score | 100% | 4.10 | 3.60 | 4.00 |

Check of the example: OPT-001 = 0.30 x 4 + 0.25 x 4 + 0.25 x 4 + 0.10 x
5 + 0.10 x 4 = 1.20 + 1.00 + 1.00 + 0.50 + 0.40 = 4.10. OPT-002 = 1.50
+ 0.75 + 0.75 + 0.20 + 0.40 = 3.60. OPT-003 = 0.90 + 1.25 + 1.25 + 0.30 + 0.30 = 4.00.

| Option | Price | Deal-breakers passed | Weighted score | Inspection result | Status |
|---|---|---|---|---|---|
| OPT-[NNN] | [amount] | [Yes / No] | [score] | [Summary] | [Shortlisted / Rejected / Offer made] |
| OPT-001 *(Example)* | USD 375,000 | Yes | 4.10 | Roof has about 8 years left | Offer made |

## 10. Financing plan

<!-- Guidance: Summarise the financing chosen in Loan Comparison. Keep the detailed comparison there so it is not duplicated. -->

| Item | Value |
|---|---|
| Source of funds | [Savings / Loan / Mix] |
| Loan comparison reference | [LOAN-CMP-NNN, decision DEC-NNN] |
| Lender and product | [Name, product] |
| Loan amount | [amount] |
| Rate and type | [% fixed / variable] |
| Monthly payment | [amount] |
| Rate lock or offer expiry | YYYY-MM-DD |
| *Example* | LOAN-CMP-001, DEC-001: Lender B, 30-year fixed at 5.875%, USD 300,000, USD 1,774.61 a month; offer accepted 2026-10-30 (before its 2026-11-05 expiry) and rate locked for 30 days to 2026-11-29, which covers closing on 2026-11-20 with nine days to spare |

## 11. Timeline

<!-- Guidance: Work back from the target date. Include every step that has a lead time: saving, pre-approval, searching, inspection, offer, financing, closing and moving. -->

```mermaid
gantt
    title Example: Morgan home purchase timeline
    dateFormat YYYY-MM-DD
    section Prepare
    Save upfront cash            :done, s1, 2025-10-25, 2026-10-25
    Check credit report          :done, s2, 2026-06-01, 14d
    section Shop
    Collect loan offers          :done, s3, 2026-10-15, 10d
    Viewings and shortlist       :done, s4, 2026-09-01, 2026-10-20
    Offer and inspection         :active, s5, 2026-10-26, 14d
    section Close
    Final loan approval          :s6, 2026-11-05, 14d
    Closing and keys             :milestone, s7, 2026-11-20, 0d
    Move                         :s8, 2026-11-28, 3d
```

| ID | Milestone | Target date | Owner | Done |
|---|---|---|---|---|
| MS-[NNN] | [Milestone] | YYYY-MM-DD | [@owner] | [Yes / No] |
| MS-001 *(Example)* | Upfront cash reached | 2026-10-25 | Casey | Yes |
| MS-002 *(Example)* | Loan decision recorded | 2026-10-30 | Drew | No |
| MS-003 *(Example)* | Closing | 2026-11-20 | Both | No |

## 12. Risks and contingencies

<!-- Guidance: List what could go wrong before and after the purchase, and decide now what you will do. The pitfall is assuming the inspection, the valuation and both incomes will all go to plan. -->

| ID | Risk | Likelihood | Impact | What we will do |
|---|---|---|---|---|
| RSK-[NNN] | [Risk] | [Low / Medium / High] | [Low / Medium / High] | [Action or limit] |
| RSK-001 *(Example)* | Valuation comes in below price | Medium | High | Renegotiate or walk away; no extra borrowing |
| RSK-002 *(Example)* | Inspection finds major repair | Medium | High | Ask for price reduction; walk away if above USD 10,000 |
| RSK-003 *(Example)* | One income lost in first year | Low | High | Emergency fund covers 6 months of essentials |
| RSK-004 *(Example)* | Rates rise before lock, or closing slips past the lock end date | Medium | Medium | Lock the rate when the offer is accepted (done 2026-10-30, to 2026-11-29); ask the lender now what a 15-day extension would cost |
| RSK-005 *(Example)* | Unexpected first-year costs | High | Low | USD 3,750 maintenance sinking fund from month 1 |

Walk-away rules: write the conditions under which you will stop, so
that the emotion of a near-finished deal does not override them.

- [Price above our maximum of amount]
- [Any deal-breaker from section 3 discovered]
- [Emergency fund would be used for the purchase]

## 13. Decision record

<!-- Guidance: Record the decision, the alternatives and why you chose. Both household members confirm in the Approvals table. -->

| Field | Value |
|---|---|
| Decision ID | DEC-[NNN] |
| Decision | [Buy option X / Wait until date / Rent / Lease] |
| Date | YYYY-MM-DD |
| Price agreed | [amount] |
| Reasons | [Reasons] |
| Alternatives rejected | [Option: reason] |
| Conditions | [Subject to inspection, valuation, financing] |
| *Example* | DEC-MPP-001, 2026-10-25: offer on OPT-001 at USD 375,000, subject to inspection and valuation; buying beats renting by about USD 40,000 over 7 years in the base case; OPT-003 rejected for a 50-minute commute |

### 13.1 Review points before you sign

Before signing the final contract or loan agreement, read sections 3
to 12 again with a second person and check each of the points below.
Large purchases go wrong less often from bad arithmetic than from a
condition that changed quietly between the first plan and the signing
date.

- **Price and condition.** The final price, the inspection or survey
  result and any agreed repairs are written into the contract, not
  only promised in conversation.
- **Financing.** The loan amount, rate, term, fees and the rate-lock
  end date in the final documents match the offer you chose in Loan
  Comparison (`personal/loan-comparison`). Compare the final
  disclosure line by line with the earlier one and ask about every
  difference.
- **Cash.** The upfront cash is in an account you can move from on
  the day, and the emergency fund is untouched. Spending the emergency
  fund on closing costs leaves the household exposed in the first,
  most expensive months of ownership.
- **Affordability.** The monthly cost of ownership in section 5 still
  passes your own limits with the final figures, including property
  tax and insurance.
- **Insurance.** Cover starts on the day you take ownership, and the
  lender's requirements for it are met.
- **Timeline.** Every date in section 11 still fits: in particular,
  the closing date is before the rate lock ends, and the move date
  does not depend on a step outside your control.

**Common errors to avoid.** Stretching the budget because a seller or
dealer has set the price anchor; assuming both incomes are certain for
the whole loan term; ignoring running costs that the old home or car
did not have; and making the decision under time pressure created by
someone else's deadline. If any point above fails, delay the signing
rather than accept a plan that no longer passes your own tests.

## 14. After the purchase

<!-- Guidance: A purchase creates new recurring costs and documents. Set them up in the first month. -->

| ID | Task | Due | Owner | Done |
|---|---|---|---|---|
| AFT-001 | Update the budget with all new running costs | First month | [@owner] | [ ] |
| AFT-002 | Start a sinking fund for maintenance or replacement | First month | [@owner] | [ ] |
| AFT-003 | Store purchase contract, title, warranty and loan documents | First week | [@owner] | [ ] |
| AFT-004 | Review insurance cover (`personal/insurance-review`) | Before handover | [@owner] | [ ] |
| AFT-005 | Update the net worth statement | First quarter | [@owner] | [ ] |
| AFT-006 | Start a maintenance log (`personal/home-maintenance-log`) | First month | [@owner] | [ ] |
| AFT-007 | Rebuild the emergency fund if it was used | Within 12 months | [@owner] | [ ] |
| AFT-008 | Compare actual costs with the TCO estimate | After 12 months | [@owner] | [ ] |

## 15. Local terms

<!-- Guidance: Purchase taxes, deposits and support schemes differ a lot by country. This table gives names only, as of 2026-10; check local law and official guidance. -->

Names only, as of 2026-10. Examples, not exhaustive, not advice. Check
local rules.

| Jurisdiction | Purchase tax on homes (name) | Typical home-buying documents | Car-related terms |
|---|---|---|---|
| United States | Transfer tax (state or local), recording fees | Loan Estimate, Closing Disclosure, title insurance | Sales tax, registration |
| United Kingdom | Stamp Duty Land Tax (England, NI), LBTT (Scotland), LTT (Wales) | Mortgage illustration, survey, conveyancing | Vehicle Excise Duty |
| Germany | Grunderwerbsteuer | ESIS, notary contract | Kfz-Steuer |
| France | Droits de mutation (frais de notaire) | ESIS (FISE), compromis de vente | Carte grise |
| Australia | Stamp duty (state) | Key facts sheet, contract of sale | Registration (rego), stamp duty on vehicles |
| [Your country] | [Name] | [Names] | [Names] |

## 16. References

<!-- Guidance: Keep the official sources you checked and the date. -->

- US Regulation Z, 12 CFR 1026.43 (minimum standards for transactions
  secured by a dwelling, including the ability-to-repay requirement),
  eCFR, checked 2026-10-25.
- Directive 2014/17/EU on credit agreements for consumers relating to
  residential immovable property, Article 18 (creditworthiness
  assessment), EUR-Lex.
- Directive (EU) 2023/2225 on credit agreements for consumers, Article
  18 (creditworthiness assessment), applying from 2026-11-20, EUR-Lex.
- Related templates: Loan Comparison (`personal/loan-comparison`),
  Budget (`personal/budget`), Emergency Fund Plan
  (`personal/emergency-fund-plan`), Financial Goals
  (`personal/financial-goals`), Net Worth Statement
  (`personal/net-worth-statement`), Insurance Review
  (`personal/insurance-review`).

## Standard and licence note

Based on public law on lenders' assessment of a borrower's ability to
repay: US Regulation Z (12 CFR 1026.43, a US federal work in the public
domain) and Directives 2014/17/EU and (EU) 2023/2225 (source: EUR-Lex,
https://eur-lex.europa.eu, reuse with acknowledgement). Rules are cited
by section and article number and described in original words. The
savings, ratio and cost-of-ownership formulas are standard mathematics,
and every assumption in the examples is fictional and illustrative.
This template is original text written for this collection and is not
financial, tax, legal or investment advice. Check the current official
version of each law and local rule before use. Template licence: MIT.