Estimate The Costs Of Moving Out Before You Buy A New Home!
Buying a personal home is a delightfully welcome change in your life. Whether you are progressing from a life of rent to home ownership or are in the process of buying a second home, the level of anticipation and considerations is the same!
However, if you thought that just saving for a down payment for your new Canada mortgage is the only expense that you will have to save for, you are up for some surprises. From hiring a moving van to paying advance utility bills – there is a lot to moving that you need to think and save for.
Take a look at the following few pointers to plan and save for the costs of moving out.
Summarize your Expenses
First things first, you need to learn about the total valuation of expenses that you need to plan for when you move from one place to another. These costs can be broken into three main parts:
- Ongoing Expenses – These include any current expenses that you have to pay off like outstanding utility charges, insurance premium, monthly rent, any other loan installments, your total home expenses like grocery etc.
- Deposits – You will have to save and deposit certain cash amounts. First in line is your Canada mortgage down payment. Also, you may have to deposit utility charges etc in advance when you move into your new place.
- First Time Costs – These expenses will cover the total costs for moving into your new home. The closing costs of your Canada mortgage lie in this category as well and include property and land taxes, legal fees, mortgage insurance etc. You will also have to account for small expenses like transportation, moving company fees etc.
Clear Your Utility Expenses
Before you make the final move, you will have to pay off any ongoing bills, your monthly rent if applicable and any other outstanding dues. On the other hand, for the new property that you are moving in, the utility charges will most likely have to be paid in advance. This will not only be for electricity or heating, but also for parking, telephone, internet, cable etc.
Though they may not seem to be too much to pose a threat to your budget, make sure you do have sufficient savings intact to pass on a few months in ease without having to worry about defaulting.
Your Canada mortgage payments will also have to be made promptly, as missing out on payments in the very initial stages not only creates a bad impression but also affects your credit score.
Plan a Budget
Changing your lifestyle for the better and bringing a few positive changes in your shopping habits can make planning and saving for a new home and a Canada mortgage much easier on the pocket. The best way to do it is to chalk out a monthly budget and start saving like a family. You can multiply the joys of moving into a new home when you split your expenses and share your happiness with your loved ones! Best of luck!