Of Prime Interest: Home buying costs outside of a mortgage
There are many things to consider when buying your first home.
One of the first items to consider is what will fit in your budget for monthly payments on your home.
Do not forget to factor in the principal and interest payment along with the following other costs:
1.) Property taxes
2.) Fire and contents insurance
3.) Strata fees if applicable
Your initial fees that pertain to setting up the mortgage will include:
• Legal fees for the mortgage set-up
• An inspection fee to ensure the property you are looking at doesn’t have major defects such as needing a new roof, furnace, hot water tank or has major structural defects
•An appraisal fee (important point to remember is the lending institution will use the value of the purchase price or appraised value, whichever is less in value, for lending purposes)
• Phone, cable, Internet, water, etc. hookups
•Moving expenses if you aren’t doing the moving yourself
After figuring out what you can afford for a payment,we alsoways encourage buyers to contact a mortgage professional to go over different scenarios for mortage interest rates and terms to help determine what you can afford for a mortgage payment.
There is also the benefit of getting pre-approval for a mortgage through various financial institutions requiring only one credit check, which won’t adversely affect your credit rating.
It can be sometimes overwhelming to look for a home on your own, which is where a realtor can be a big help.
We can’t stress enough that you should stay within what you can afford.
Start off small and get your foot in the door of home ownership.
And don’t overlook the potential opportunity to look for a home with a suite to offset your monthly payments.
Mortgage rates are still low and it appears the Bank of Canada will continue to hold interest rates in place for the immediate future.