Home Buyers Need to be Prepared to Spend Thousands of Extra Dollars to Move in

TORONTO, ONTARIO, April 25, 2019 - The costs associated with home ownership just keep going up.

Currently there are a number of costs associated with a home beyond the sales price that buyers need to be aware of. RateSupermarket.ca has been examining these expenses recently and researching the process of buying a home. "First-time home buyers are often shocked when they see the total amount, they may need to pay on closing day," says Janine White of RateSupermarket.ca.

Here is a brief rundown of what to expect in order to minimize unexpected expenses.

The Home Inspection

Several hundred dollars need to be set aside to have a professional inspector check the home for any major issues. This is a very crucial step to avoid being left with a bill for thousands of dollars' worth of major repairs to pluming, roofing, and electrical wiring within the house after moving in. Arrangements can be made with the seller to handle the costs of repairs, or homes that are significantly damaged are better left on the market.

Legal Fees

During the process of closing on a home, a lawyer will need to be paid to make sure all of the relevant paperwork is done and filed correctly.

A New Home Warranty

Certain provinces such as Ontario, Quebec, and British Columbia require a fee to protect homes in new developments from damage if there has never been a previous owner.

Mortgage Insurance

When 20% or less is put down on the total cost of a home, a lender will usually require a small percentage of the price be paid to purchase insurance on the mortgage in case of a default. A mortgage affordability calculator can help determine the cost.

Home Insurance

The home needs to be protected from damage that is caused by weather, fire, vandalism, accidents, and many other problems. A buyer can compare home insurance rates from different companies to get an insurance plan that is both cost effective and provides the right coverage based on the location and value of the home.

Miscellaneous Expenses

There may be several other one-time expenses associated with moving into the new home such as new appliances, renovations, or paying a company to bring in large items such as furniture, that buyers often forget to consider into the costs of buying a home. These expenses can add up and considered part of the rising cost of homeownership.

Launched in 2008, RateSupermarket.ca is Canada's one-stop shop for the best rates on personal finance products; offering over 11 million Canadians the best mortgage rates, credit cards, bank accounts and GIC rates. RateSupermarket.ca is a division of Kanetix Ltd. RateSupermarket.ca is located at 360 Adelaide Street West, Suite 100, Toronto, ON, M5V 1R7.