Purchasing a home is an exciting step in life. But as you start to learn more about houses for sale in Dorval, it is essential that you fully understand how owning a house will impact your budget. First-time homeowners often overlook some of the costs that come with owning a house. There is more to it than your monthly mortgage payment! Here are some other financial factors that you will need to consider.
1. Utilities
Depending on where you were renting previously, you may have already been required to pay for some of your utilities. For example, many apartment complexes require that renters pay for their own electricity or internet services. However, other common utility expenses, such as water, sewage, trash, or gas, are often covered by the apartment complex or included in the price of rent.
As a homeowner, you will be fully responsible for these bills yourself. Keep in mind that since most homes are significantly larger than an apartment, the overall cost of your utilities will likely increase as well.
2. Association Fees
Homeowner’s associations perform a variety of tasks to improve the neighborhood, from maintaining common areas to providing extra amenities such as swimming pools or lounges. To ensure that the association has the funding needed to fulfill its responsibilities, homeowners are typically charged monthly or quarterly fees. Though such fees usually aren’t very expensive, they still shouldn’t be overlooked!
3. Insurance & Maintenance
Mortgage companies require that homeowners purchase insurance to cover expenses should a catastrophic incident strike the home. Compared to car insurance, home insurance is much less expensive. Payment is typically handled by your mortgage company; you pay a small amount of the annual insurance bill each month to your mortgage provider as part of the escrow payment.
While insurance will cover a catastrophic event like a fire or flood, it doesn’t cover those basic household maintenance concerns that pop up from week to week. It is generally recommended that homeowners budget about one percent of their home’s total value toward repairs and upkeep each year.
Parting Thoughts
While the previously mentioned expenses won’t necessarily have as big of an impact on your budget as the mortgage payment itself, they are still important to consider. When you have a full understanding of what your monthly expenses would be, you will have a better idea of what you can and can’t afford. This way, buying a home will be just as enjoyable as you had hoped it would be.
