Do You Know All the Costs of Buying a Home?

Do You Know All the Costs of Buying a Home?

Although buying a home is usually a good investment, it’s important to know all the expenses of home purchasing. The more you know, the better prepared you’ll be. Additionally, you can more accurately target a property that matches your savings and income.

Of course, a great way to find an affordable home is to work with a reputable realtor. For example, people searching for properties in Durham Region should find a real estate agent in Pickering, Ajax, Oshawa, or Whitby who can offer guidance and advocate on their behalf with excellent negotiation skills.

Even after finding your dream home for a fair price, please prepare for the following expenses:

1 Down Payment

You’ll need to save a down payment. According to the government of Canada, the minimum down payment for a home costing $500,000 or less is 5% of the purchase price. However, a higher down payment can positively impact your borrowing terms and rates.

2 Closing Costs

There are multiple closing costs you’ll have to pay with the purchase of your home. Typically, closing costs are 3 to 6% of your loan amount. For example, on a mortgage of $200,000, your closing costs can range from $6,000 to $12,000.

3 Property Taxes

Homeowners are responsible for property taxes. The value of property taxes can be thousands of dollars per year. It all depends on your home’s value and the local tax rate.

4 Homeowners Insurance

While homeowners’ insurance isn’t required by law, your mortgage lender may require you to get home insurance coverage. Homeowners insurance is a good thing, though. To get best insurance services, you can checkout this source: Uplift Insurance Group

5 Maintenance and Repairs

If you’ve been renting until now, you’ve probably never been responsible for home maintenance. As a homeowner, you must set money aside from small maintenance and major repairs. Some of these costs can be sizable, so stay prepared.

6 Upkeep

Another cost associated with homeownership is upkeep. It’s best to keep your porch, yard, and lawn cleared to maintain property value. You may also have to pay for seasonal upkeep costs, such as clearing snow off of your property.

7 Utilities

You will have to pay different types of utility bills as a homeowner. Costs such as water, electricity, and gas must be paid regularly. Many homeowners invest in energy-efficient bulbs, appliances, and windows to reduce energy bills.

8 Moving Costs

Many new homeowners underestimate the cost of moving, especially when they’re purchasing property in another town. Moving costs can be upwards of a few thousand dollars, depending on how many belongings you’re shifting and the distance to your new home. Please also be wary of moving scams to avoid headaches down the road.

9 Membership Fees

Depending on the community you’re moving to, you may have some mandatory membership fees. For example, owners of apartments in a condo must pay condo fees. Fortunately, these fees cover the cost of upkeep and maintenance.

From your down payment to moving costs, there are many expenses you must be ready for as a future homeowner. Work with a trusted real estate agent to learn about all the costs of homeownership and start preparing for them now.