While the idea of becoming a home owner is appealing for many people, there are many costs that need to be taken into consideration, costs that do not appear when you are just renting a place. Whether you are a Canadian military or a civilian, the costs are the same, but as a military you need to take into account the possibility of relocation along with all the other factors before buying a home. Click here to find an experienced mortgage broker. To this extent, these are the main costs you should take into account before buying a home:
The Mortgage Payment
This will be by far one of the largest expenses you will have to deal with on a monthly base. While the amount you will have to pay can vary on several factor, it will always be something that you need to take into account every time you consider your expenses.
Because you are now a home owner, you will need to pay a property tax. This can be done in two ways. You can either pay it monthly together with your mortgage, or pay it directly to the municipality. If you find the second option better, you might be requested to submit proof of payment from time to time.
Most landlords include the utilities in the rent the charge, so as a tenant you rarely need to worry about this aspect, but as a home owner, this will fall under your responsibilities. Bills such as gas, water, electricity, telephone and others will have to be taken care of monthly.
When you rent a place, every time something breaks, you call your landlord to replace it. Now, the costs of plumbing, snow removal, roof repairs and everything else that will need to get done around the house will fall under your responsibility. The good news is that some repairs and improvements can actually increase the value of your property, in case you might want to sell in the future.
Depending on the municipality, these taxes can either be included in the property ones or they need to be paid separately at the end of each school year.
These are the main costs that any home owner needs to deal with almost every month, so those who are planning to buy a house, should not only take into account the costs of buying it, but also the costs of actually owning it.