Budgeting for First-Time Home Buyers
Far too often new home buyers lose focus on proper budgeting. That’s understandable with all of the excitement of buying a new home. That means sometimes forgetting to take into account the costs that are associated with buying a new home. This leads to them stretching themselves too financially thin.
It is extremely important to work out the costs involved in buying and owning a house. Budgeting and calculating what you can realistically afford to spend on your new home has to be done.
Our experienced mortgage brokers can advise you and help you create an effective budget. This enables you to get the best Canadian Mortgage that suits your needs. In accessing our vast network of lenders, we will find you a product that meets your needs and fits within your budget.
Proper Budgeting for First-time Home Buyers
For first-time home buyers, the following costs should be considered when creating an effective budget:
- Deposit – Ensure you can meet the costs required for a down payment. You can obtain the deposit through a monetary gift, personal funds, or be borrowed.
- Disbursements – Be sure to take into account legal, home inspection, tax, registration, insurance and home appraisal fees.
- Mortgage Insurance – Consider mortgage insurance if you take out a high ratio mortgage of 75 percent or more of the property value. Add the insurance premiums to your loan, but you may have to pay application fees.
- House and Content Insurance – Include protection for your possessions and your new home investment.
- Moving Costs – Ensure you can cover moving expenses. They can add up quickly. Take all potential scenarios and details into account.
- Utility Bills – Anticipate connection fees as well as monthly and quarterly bills for your utilities. This might be a new expense for those who have been previously renting and were not responsible for utility payments.
- Maintenance and Renovation – Plan for unexpected costs associated with unforeseen repairs and renovations in your new home. Leaks and breakdowns are always a possibility, so keep that in mind.
- Miscellaneous Living Costs – Account for various other bills such as groceries, furniture, household accessories and vehicle costs.
Our professional mortgage can help assess your details and offer professional advice. Understand how much you may be able to borrow based on your budget, income, and the potential monthly repayments you will be making.
We want to help prevent your new home purchase from stretching your resources too thin. We do this by finding a mortgage you are comfortable with and one that you can afford.