What are the monthly costs with owning your home?

While owning your own home can be a dream come true, it will also come with some financial responsibilities. Let’s take a look below at a few of those obligations that you can expect as a homeowner.

Your Mortgage Payment

In many cases, your mortgage payment will be the largest expense each month. Your mortgage payment may vary depending on a variety of variables such as your term length, amortization, down payment, & purchase price. While a portion of each payment will go towards interest, you will see the amount that goes towards your principal grow with every payment you make.

Home Insurance

Home insurance is vital component for every homeowner. Ultimately, home insurance is the avenue in which protects your greatest investment, your home. Setting up a policy before completion is recommended and, in most cases, required with each transaction.

Strata Fess

Strata fees, also known as maintenance fees, are subject to developments that run with strata management. You will typically see strata fees in condominiums, townhomes, and other detached homes that are considered bare land strata. These fee’s generally help with the overall maintenance of the common property and include a built-up contingency fund for any future repair’s or emergencies that may occur within the development.

Utility Bills

As a homeowner, you’ll have general bills such as heating, electricity, gas, water, cable & internet.

Property Taxes

Every homeowner in Canada will be required to pay their annual property taxes that are generally based off your property’s assessed value. Property taxes can be paid in one of two different ways – paid in one lump sum for the calendar year, or they can be incorporated right into your monthly mortgage payment.