Utilities

Certain factors affect what sorts of utility payments a house faces on a monthly basis. High ceilings are harder to heat and cool, a big window facing the morning sun can heat up a house really quickly in the summer, and certain appliances can be a real drain when it comes to electricity. It is not rude to ask to see some recent utility bills from the sellers because this can give you an accurate portrayal of what you may be paying for utilities if you purchase the house. Although it is true that every family uses utilities in different ways it is better to know what is generally spent at each house. If you find two houses that you equally like it may come down to which one will cost you less on a monthly basis, and if the mortgage amount is the same the only difference may be monthly utility bills.

Upfront Costs

Appraisal fee: Your mortgage company may request an appraisal be done on the property; this fee will have to be paid by you. The appraisal will likely cost around $300.

Deposit: When you make an offer to purchase you will have to put down a deposit. Deposit amount can very greatly but typically 5% of the purchase price is used.

Down payment: Conventional mortgages typically require 25% of the purchase price. Whereas a high-ratio mortgage will likely require 5%.

Estoppel certificate fee: This applies if you are buying a condo or strata unit and may cost $100.

Home inspection:

Home inspection fees can very with the size of the home. A typical home inspection will likely be in the range of $300-$500.

Land registration: This fee is paid at closing and is usually paid to the local or regional office. Fees vary so check with you lawyer as to the current rates.

Legal fees and disbursements: This fee will be paid at closing and typically costs a minimum of $500.

Mortgage loan insurance: Usually if you have a high-ratio mortgage, less than 25% down, you will need mortgage loan insurance.

Prepaid property taxes: Reimburse vendor for prepaid costs.

Property insurance: This insurance will cover the costs of replacing the contents of the home or the structure of the home. Property insurance protects the mortgage lender in case of lose or damage as the home is considered security for the mortgage.

Survey of certificate of location fee: A current copy of the survey or certificate of location may be required by the mortgage lender before finalizing the loan. This may cost up to $300.

Other costs to consider:

Appliances

Condominium fees

Decorating materials

Gardening equipment

Hand tools

Moving expenses

Renovations or repairs

Service hookup fees

Window treatments

Winter equipment

Consider all costs before making the final commitment to purchase your home. Other costs you should prepare for include; maintenance, emergencies and contributing to your retirement savings. Don’t put yourself in the position of being “house poor" give yourself room at the end of each month and enjoy your home.