Your home is probably the biggest purchase you’ll ever make. But the expenses don’t stop with the price. You’re probably already aware of closing costs (legal, appraisal, title fees, etc.) which can run anywhere from 1% to 3% of the purchase price. But that’s still not everything most people end up paying! Here are some additional costs you need to budget for:
- Home Inspection. You can avoid major costs down the road by having a professional check for potential problems before you buy. An inspection will cost a few hundred dollars. If an issue is found (like asbestos or structural problems), you may need to pay a specialist to do a more detailed assessment.
- Moving. Most people totally forget how expensive this can be. Depending on how much stuff you have, how much packing you do yourself, how far you’re moving, and how much coverage your mover offers, this can cost from several hundred to several thousand dollars.
- Incidentals. These may sound minor, but they add up fast. Some things to keep in mind are having your locks changed, utility deposits or set-up fees, mail redirection, carpet cleaning, furnace and AC servicing, etc.
- Insurance. Lenders require you to have house insurance before you get your mortgage. This protects the lender’s security in case of fire or any other damage, as well as protecting your family home and contents. Expect to pay at least $1,000 per year.
- Property Transfer Tax.This is a tax charged by many provinces and some municipalities. It’s calculated as a percentage of the property value. Expect to pay several thousand dollars. Fortunately, many provinces and municipalities give first-time buyers a break.
- GST, HST or PST.If you’re buying a NEW home, chances are you’ll pay GST, HST or PST on the purchase price. Again, this can be several thousand dollars.If you’d like help budgeting for ALL the costs of home ownership, please give us a call. We’re always happy to help!