Visit Green Living
Read Our Blog

Review your financial position.

In The Bag
  • Do you have a down payment? This should be 20% of the purchase price to avoid private mortgage insurance.
  • Do you have enough available cash to pay the closing costs? This is typically $3000-$5000 for a new loan.
  • What is the maximum payment that you can afford? This figure should include the mortgage, insurance and taxes as well as Homeowner or Condo Association dues, at minimum.
  • Are you prepared for higher utility costs? Average utility bills in a house are sometimes double what you would pay in an apartment.
  • Do you have enough extra funds available to furnish and decorate your new home or will you have to go into debt to afford these items? If so, incorporate the additional payments into your monthly budget.
  • Are you financially prepared to pay around 1% of the purchase price in yearly maintenance fees. For a $200,000 home, this would equate to approximately $2000 per year.
  • Are you prepared to stay in the home for at least 7 years so that you succeed in building some equity before selling the house and paying realtor fees (usually 6% of the sales price). Very little equity is built in the first few years and what is built, is typically negated by mortgage interest, insurance and taxes, and the additional costs associated with owning the home.