Clients always ask me what the mortgage payment is, and sometimes I would love to list out every extra cost to help them realize the true cost of Home Ownership. In saying that, here is a quick list.
Always remember to add this to your budget when thinking of getting a home, as we do not use some of these expenses in your Mortgage Affordability
This kind of information doesn’t save you thousands necessarily, but it will save you from forking out future expenses you didn’t plan on.
The Forgetful Eight.
- Property taxes: Annual taxes can top several thousand dollars in major urban centers. Ask your broker, there are lenders and banks that will include this payment in your total monthly mortgage payment.
- Energy costs: Gas, electricity, pool?, lots of other things.
- Phone internet: they can run lower these days, but lets consider all the streaming subscriptions. I know I have 5!
- Home insurance: more expensive these days, but totally doable. Always let your Mortgage Agent/Broker know who you are using, and your lawyer. This helps get the process moving.
- Municipal services: this can run around 1% of the purchase price, but we can check with you before you sing on the dotted line.
- Fuel Or transit costs: how far of a drive do you have to your work? school? this is easy with GPS nowadays, but do the calculations. See what it will cost.
- Upkeep: always, always, always, something needs done in your home. Brand new, old, something will always break. Lets budget some extra cash for this.
- Liesure Bills: extra things that could be cut off if needed to increase cash flow. Pool, etc.
