Are You Buying a Home? Don’t Forget These Additional Expenses!
Whether it is searching for the most affordable mortgage rates or finding the perfect neighborhood, buying your own home comes with a string of considerations on your part. While most of us save for the more bulky expenses like the down payment or the monthly mortgage installments, additional costs like moving expenses and closing costs are often ignored.
Even though they may not seem to be significant at first, ignoring these additional costs may make your budget planning go haywire and cause you financial problems down the road.
Thinking of what additional costs other than the Canada mortgage are involved when you are moving?
Go through the following information and tips to learn in detail about the various moving costs and how to plan and save for them in advance:
Property and Land Taxes
Every state and city has different parameters for devising the total land transfer and property taxes. Though the exact amount differs in every region, the amount of tax is higher in certain cities like Toronto for example, and the costs are somewhat lower in the suburbs. Research on these rates beforehand on the internet or consult a Canada mortgage broker of more information and help in this regard.
Until and unless you pay off at least 20% of down payment to your lender, you will have to apply for a CMHC insurance to secure your Canada mortgage and assure your lender. This will bring a considerable increase in your monthly mortgage payments, so make sure that you account for this extra amount when you are planning your budget.
Before you move into your new home, you will have to pay for the installation and/or settling of bills of the various utilities in and around your home. This means that you will have to set up accounts for electricity, heat, plumbing and piping, water, sewer and trash collection, municipal charges etc.
Getting new phone, internet and cable connections are also a consideration for first time home buyers. All of these add up to become a significant additional expense other than your Canada mortgage payment.
Documentation and Legal Fee
A lot of documentation and paperwork is an essential part of the deal when you decide to buy a house for yourself. You will need the services of a broker, home inspector and a lawyer to go through with all the legalities of a Canada mortgage, so make sure you have enough funds in hand for paying off these expenses.
Miscellaneous Moving Expenses
From renting out vans for moving your stuff to ordering food for all your friends helping you make the move, these small yet important costs can pile up easily to a lump sum amount. You can plan accordingly for all these costs by hiring a competent and reliable moving company in order to be assured of an affordable deal and security of your things.
With the current mortgage rates looking affordable and attractive for prospective buyers, now is the best time to start planning your budget and make a move into your dream home! Happy moving!