So you know about your mortgage and you’ve got those covered. Unfortunately, that is not all.
You learn more about a house when you’ve been living in it for at least a couple of months. You can hear creaky stairs or realize you have weird neighbours. Then your bills start to arrive and you get the biggest shock of your life. As it turns out, there’s more to owning a house than just paying the mortgage.
Okay, so you probably expect this but how has the real amount compare to your expectations? You should always prepare yourself that it’s possible for your hydro, water, and heating bills to double anytime.
There are cities in Canada that offer online property tax calculators ( a little Googling will let you find one). You should allot at least $300 per month for this. That would amount to an annual bill of $3600.
If you had been renting a property before, that means you had paid tenant’s insurance. However, know that the bill for tenants is so much less than what a homeowner pays. Let’s say for an annual premium of $800, you would need to budget $65 every month.
Homeowner Association Fees
Now depending on the neighbourhood that you live in, or the type of housing you have (condos definitely have this), you may have to pay for homeowner fees. These fees are often for the maintenance and security of the area, as well as other projects the association conduct.
Now let’s move on to those home ownership costs that while you may not have to pay for regularly, will cost you quite a big chunk when time comes that you need to. What are these random costs? The usual ones are for furnace replacement or HVAC repairs, roofing repairs, paint jobs, plumbing, and more. Even if you move in to a house that’s relatively new and every system worked when the inspector checked them, you should expect for problems to arise every once in a while. More importantly, you should be prepared for them. These are problems that you didn’t have to worry when you were renting, but you have to handle them now that you are the homeowner.
When buying a house, don’t just think about the mortgage. Think about all these extra costs. Also, think of how much is going to be left for you and your family after you pay for all of them. If you believe you’re ready, then go ahead! Call us and we’d help you find a home that would suit your needs and preferences!