You’re thinking of buying your perfect home? You’re prepared for the down payment as well as the loan and tax instalments and insurance. You’re sure you’ve thought of everything. But have you really anticipated everything?
Buying a home is not only a matter of making loan payments! It’s important to anticipate other expenses. And since these expenses can impact the amount you put down, you need to keep them in mind during the buying process. These expenses* can include:
- Appraisal fee ($350)
- Welcome tax ($2,000)
- School taxes ($500)
- Home inspection fee ($150)
- Municipal taxes ($2,000)
- Moving cost ($1,000)
- Home insurance ($400)
- Lawyer (notary) fees ($1,000)
- Loan insurance ($1,600)
3% to 5% of the property value is generally considered to be the minimum amount required to cover these expenses*.
Other expenses
Depending on your situation, you may find yourself faced with other costs such as:
- Water analysis
- Septic tank inspection
- Certificate of location
- …
You must also think about expenses related to setting up your new home. For example, planning for home hardware purchases is also necessary. Even a home that is fully ready to move in to usually requires a few visits to your favourite hardware store if only to pick up a few decor items, paint or supplies for small touch-up jobs! Also think about expenses related to hooking up services such as the electricity, television, Internet and gas.
Changing homes can also mean you’ll need to make new purchases. Now’s the time to ask yourself the following questions:
- Do you need tools to make necessary renovations or repairs?
- Do you need gardening tools?
- Do you have equipment to remove snow or cut the grass?
- Do you want air conditioning?
- How are the lighting fixtures and window coverings?
You might find this list very detailed, but when it comes to buying a home, it’s better to plan for as many expenses as possible from the start and set aside a certain amount for unforeseen costs. That way, you’ll avoid unwanted surprises during the first few weeks in your new home!
We invite you to contact the National Bank Mortgage Development Manager dedicated to your office, they will plan with you the expenses during the buying process and refer you to an expert for a sound financial planning.
*These approximate costs are based on a home worth $200,000, and are provided for information purposes only. These amounts may vary, and other fees may apply.
Photo: iStockphoto
