Down payments, insurance, and bills - the list of costs associated with new homeownership can be overwhelming at first but is completely manageable with proper planning. To help you prepare, we’ve compiled the 5 top costs you should budget for when choosing your new home.
1. Down Payment
This is one of the first costs you’ll need to plan for when buying a new home. Most people put 5%-20% down, so having a home price range in mind can help you save ahead of time. Also, if you put less than 20% down, you will need mortgage insurance. Here’s everything you need to know about Canadian mortgage insurance.
2. Monthly Mortgage Payments
This will likely be your biggest monthly cost as a homeowner. Be sure to discuss with your mortgage broker to ensure you are getting a mortgage rate and terms that work best for your financial situation.
3. Utility Bills
If you’ve previously rented a home, these expenses may have been included in your monthly rent. As a homeowner, electricity, water, and heat will all be separate bills and will range depending on your usage levels and the square footage of your home.
4. Property Taxes
This cost can vary a ton depending on your community and home lot you choose. To help budget, use the current municipal and provincial tax rates and your anticipated home assessment value to estimate how much you’ll be paying annually.
5. Home Insurance
Your new home will be a big investment and you’re going to want to make sure it’s protected. Basic property insurance is required, but consider other additional add ons, such as flood insurance, depending on what could impact your area. You could also consider a security system for your new homes Edmonton. This may seem like an additional monthly cost, but having it lower your insurance rates, and the added sense of peace knowing that your family and home are protected could go a long way.
Are you ready for the next step towards a new home? Morrison Home's Area Managers can help give more insight into these costs, depending on your community and home you choose. Get started and browse our quick possession homes and showhomes today!
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