Whether it’s a bungalow, condo or duplex, owning your own home is quite an accomplishment. But it is also a significant financial responsibility.
Owning your own home can inspire pride and a sense of accomplishment, but it’s important to consider everything from home maintenance and mortgage payments to insurance and property taxes before you buy. . Here are some of the main factors to consider:
Consider Upfront Costs
The down payment is not the only initial expense when buying a home. To avoid unpleasant surprises, you should think about other immediate costs you may incur, including:
Brokerage commissions. These apply if you sell your home through a realtor while looking to buy another.
Property transfer rights. These duties, expressed as a percentage of the purchase price, are generally payable to the purchaser of a property to the provincial government.
Inspection fees. Before submitting an offer, retain the services of a professional inspector. It will help you identify potential problems or repairs that need to be done and confirm the home’s actual condition.
Appraisal Fees. Your mortgage lender will appraise the property you are buying to ensure it is worth more than the loan amount. Generally, as the buyer, you are responsible for these costs.
Closing costs and notary fees. You will need to retain the services of a notary who will help you with the legal aspects of the transaction.
Moving expenses. Whether you will do the move yourself by renting a truck or whether you will deal with a mover, these costs will vary.
Costs associated with a new home. If you buy a new house, you will very likely have to quickly incur additional expenses related to purchasing household appliances, paint, curtains, fencing, air conditioning or lighting. Prioritize.
Also, consider recurring expenses.
In addition to the one-time costs associated with buying a home, you also need to consider other financial obligations:
Mortgage repayment. Usually, this refund will be your most significant expense.
Property tax. It must be paid periodically to your municipality, either directly or with mortgage repayments.
Public services. These include heat, electricity, water, telephone and cable.
Home insurance premiums. Ensure you are adequately protected against fire and theft and have adequate liability insurance.
Mortgage insurance. Protect your family and your investment with insurance that protects your mortgage payments if you become seriously ill or die prematurely.
Condominium fees. These apply to a condominium or townhouse. Some costs may be included in the charges, such as utilities or cable, but since they vary, make sure you know what those charges cover.
General maintenance. Remember that living in a home requires you to cover the costs of maintaining it, snow removal and lawn care. Proper maintenance protects if not even increases the market value of your property.
By carefully evaluating all up-front costs and recurring expenses, you can establish a financial plan that will protect your investment for years to come.
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