What are the Costs of Home Ownership?
Utility Costs
Utility costs do not just include hydro and gas – they can include other costs you have to pay locally, such as water and sewage, which might not be included in your property taxes.
Homeowners Insurance
As a homeowner, you need to have insurance. Premiums will depend on a number of factors, such as age and value of your property, location, claim history, contents, proximity to a firehall and fire hydrants, and specific features (ie. Wood vs. gas heating).
Find a local insurance broker in your area to get a quote on the home you are interested.
Maintenance Costs
A home requires constant upkeep and maintenance. Whether it be small projects or routine maintenance, it will all cost you time and money. Projects such as re-shingling or replacing windows and doors might not need to happen often, but it is important to keep track of the larger maintenance projects so you can avoid being surprised with a large cost when those things need to be repaired or replaced.
Property Taxes
Property taxes are based on the assessed value of your property. They are due at a certain time each year and can be added to your monthly mortgage payment, meaning that your lender can pay on your behalf.
Closing Costs
When you close on your new home and take legal possession, you’ll need to pay for a few things before you get the keys. These include legal fees disbursements, land transfer tax, title insurance, property insurance and interest adjustment. While there’s no hard number to reference, these costs typically run between three and and five per cent of the purchase price of your home, so plan accordingly.
Maintenance Costs
A home requires constant upkeep and maintenance. Whether it be small projects or routine maintenance, it will all cost you time and money. Projects such as re-shingling or replacing windows and doors might not need to happen often, but it is important to keep track of the larger maintenance projects so you can avoid being surprised with a large cost when those things need to be repaired or replaced.
Property Taxes
Property taxes are based on the assessed value of your property. They are due at a certain time each year and can be added to your monthly mortgage payment, meaning that your lender can pay on your behalf.
Closing Costs
When you close on your new home and take legal possession, you’ll need to pay for a few things before you get the keys. These include legal fees disbursements, land transfer tax, title insurance, property insurance and interest adjustment. While there’s no hard number to reference, these costs typically run between three and and five per cent of the purchase price of your home, so plan accordingly.
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Emergencies are bound to happen, so having some money set aside to help cover these costs should an emergency occur is smart. Keeping this in mind when searching for a home is also a good idea, as an older home may result in more repairs than a newer build.
Roof repairs, tree removal, fixing a bathroom sink or toilet, replacing appliances and HVAC repairs are just some of the emergency repairs you should be prepared for.
Emergency Costs
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If you purchase a home or a condo within a strata, you will be required to pay monthly fees for the upkeep of the property/building. These costs often include garbage pickup, snow removal, landscaping, yearly maintenance and is contracted out by the strata corporation each year.
Condo/Strata Fees (If Applicable)
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Take a close look at parking around your potential new home. Do you require a permit? How many stalls do you have? Do you have to pay for parking? If parking isn’t included with your home, it may be an additional expense you need to consider.
Parking
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Emergency Costs
Having a chance to say a proper goodbye to the people that have been a big part of their lives — neighbours, babysitters and coaches — is an important part of the emotional process of moving. Throw a casual potluck and share some stories over a plate of samosas. (And when you get into your new digs, get out there and introduce yourself to new neighbours toute suite.
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Condo/Strata Fees (If Applicable)
Packing up the kids’ rooms has the potential to be a less-than-peaceful process. Inject some fun into the functionality by getting them to create their own “Treasure Chest.” Pull out a packing box they can decorate with special markers and stickers and then fill with their favourite objects to keep close to them on the journey.
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Parking
Sometimes it may feel like the adults are making all the decisions (we are, sorry) and things are out of control. Getting the kids involved in picking out new furnishing and bedding for their room allows them to feel a sense of ownership of the new space. (Plus, that Star Wars duvet cover is super cool no matter how old you are.)