July 12th 2016
Home ownership is a very exciting time. You are taking on a whole new responsibility with many expected and unexpected costs. To ease the pain or soften the blow to your bank account, we have put together 8 costs of being a homeowner that you may not be aware of. This list will help you prepare both financially and mentally for the bills before they start rolling in.
1) Home Insurance – this protects your contents and your home and can range anywhere from $1000 - $2000 per year.
2) Any Utility Adjustments – if the seller pre-paid any of their utilities, you will have to repay them the prorated amount, due upon closing.
3) Title Insurance – This protects you from issues that may arise with home ownership such as fraud, title defects or forgery.
4) Mortgage Insurance – if your down payment is anything less than 20% of the home purchase price, yours is considered a high-ratio mortgage and will be charged an insurance premium. This costs will vary depending on the percentage of a down payment you are making.
5) Legal Fees – Don’t forget that you need to hire a lawyer to review and sign off on all of your mortgage documents and there is always a fee for this.
6) Home Inspection – Although some homes are purchased without the condition of a home inspection, we strongly encourage all buyers to have this done prior to moving in. Despite the cost, anywhere between $200 - $500, uncovering hidden issues allows for planning and we feel this is money well spent!
7) Land Transfer Tax – this is based on a percentage of the purchase price and first time home buyers can apply for a rebate in Ontario.
8) Moving costs – don’t forget to plan for the big day! It’s important to decide beforehand if you are going to hire movers or plan to have friends and family help you with your move. Either way there may be costs associated with that. It’s important to shop around for movers as well as read the reviews. Depending on the distance your furniture is travelling and how much you have, costs can be anywhere between $800 - $5000.
Written by Amanda Perkins