When it comes to calculating the costs of homeownership, for many people, it all begins and ends with that pesky monthly mortgage payment. But there are a whole range of other expenses that come along with buying or owning a home, including some that can be easily predicted and prepared for—and some that can come as (very) unwelcome surprises.
Whether you’re a real estate veteran, a new homeowner, or a first-time buyer who’s in the market for your first property, here are a few of the “hidden” and “not-so-hidden” costs of buying and owning a home that you should be prepared to factor into your budget.
Costs of buying a home
First, when buying a home, first-time buyers in particular may not be fully aware of all the extra expenses they’ll need to cover above and beyond the sales price. For example, depending on where you live and the kind of property you’re purchasing, in addition to the down payment, some of the other costs you may need to prepare for include:
· Home inspection fees to assess the condition of your new home and uncover any potential problems;
· Appraisal fees to verify the value of the property and obtain mortgage financing;
· Land survey fees to make sure both you and the bank know the exact borders and boundaries of your new property;
· Title insurance to protect your investment against any potential issues with obtaining the title for the property;
· Legal fees to cover the services of your lawyer along with any expenses they incur while working on your behalf;
· Land transfer taxes on the purchase of any property in Canada;
· GST / HST on the total purchase price of the property;
· New home warranty costs if you’re buying a newly-built house;
· Mortgage insurance costs from CMHC or other providers if your down payment is less than 20% of the cost of the home; and
· Moving and utility hook-up costs to get you and your family settled and comfortable in your new home.
Costs of homeownership
Unfortunately, the routine and hidden expenses don’t stop once you own your home, either. In addition to your mortgage payments, homeowners in B.C. should set aside enough money on a monthly or annual basis to cover costs like:
· Property taxes paid every month or year to your local municipality;
· Condo fees if your home is part of a condo or strata;
· Home insurance to protect you and your belongings from being on the hook for unexpected damages;
· Monthly utility bills to cover the heating, cooling, electricity, internet, and other expenses;
· Regular maintenance fees to pay for everything from plumbing leaks to new appliances or electrical repairs; and
· Major replacements and repairs like having to replace the roof, resurface the driveway, or get a new boiler.
Learn more
Are you a new homeowner or thinking about getting into the real estate market in the Lower Mainland? Contact us today to schedule a free consultation before you put your budget together or make any final decisions!