When it comes to determining costs associated with homeownership, you’re mostly got an impression about how much your monthly mortgage payment will be when you take out a mortgage to buy a home. However, there are some hidden costs of homeownership that will add up in your monthly cost soon in the process. How much does it cost to own a house? Buying a home is an expensive task that requires you to find out your affordability, and or creditworthiness prior to taking out the mortgage loan. Here in this article, you will find; how to learn the total costs of homeownership? Following is an overview on taking out and determine the true cost associated with the mortgage to buy a home in Canada, specially selected from the Financial Consumer Agency of Canada that will help you in learning about the total costs associated to become a homeowner; it’s brief and to the point:
Half of Canadians who plan to purchase a home think they will only need to cover the down payment to move in. The “closing costs” however, can add as much as another four percent of the total purchase price of the home.
Closing costs can include:
- legal or notary fees
- land registration fees
- municipal levies
- appraisal fees
- home inspection fees
- utility hook-ups
- title insurance
- property tax and utility adjustments.
Additionally, if your down payment is less than 20 percent of the price, you will have to pay for mortgage default insurance plus the provincial sales tax charged on it.
For a $300,000 home, closing costs could range from $4,500 to $12,000. Other up-front payments that may be required include moving expenses and the real estate costs for selling your old home. Even redirecting your mail is an added expense.
A complete guide to the finances of home-buying is available on the website of the Financial Consumer Agency of Canada at ItPaysToKnow.gc.ca.
Source: Financial Consumer Agency of Canada (FCAC)
Date modified: 2015-06-30
How to save thousands of dollars in home financing? There are various factors that can save you, where your real and total costs associated with your homeownership will determine your real savings, you may please consult your mortgage consultant to find the best deal for you. For more information and updates on “total costs of homeownership”, you may please go directly to the official website of the Financial Consumer Agency of Canada (FCAC).