The hunt for your first home on the Markham real estate market can be a real thrill. This pleasantry could fade very quickly, however, if you’re not expecting the costs associated with owning a home. Your Markham dream house may seem unattainable as the costs pile up.
If you’re prepared and have the knowledge of homeownership costs, your vision can become a reality. Here are the costs you should be prepared to pay as a new homeowner.
A mortgage is a loan you can receive to pay for your new property. Your bank or credit union would lend this, and afterward, you will be paying your loan back to them. You can establish a plan to pay in weekly, bi-weekly, or monthly increments so that eventually the debt is paid and the house is truly yours.
As straightforward as that may seem, there are additional interest costs on top of your mortgage. The lower, the better, as it means you don’t have to pay as much interest while paying off your debt. That’s why it’s helpful to watch for Canadian real estate conditions, which is a major determining factor of your own mortgage rate.
To get the loan, there’s a down-payment required. If you don’t have 20% of the house price in your account, you’ll need mortgage insurance, which adds to your billing.
To learn what kind of mortgage you can afford, try this calculator.
When it comes to insurance, you have to spend money to save money in the long-run. There is a lot of room for damages to occur, from the weather to other circumstances. Paying into a plan can seem expensive on top of your regular mortgage payments. However, this will save you dramatic costs if your home is insured and faces any of these issues.
These costs will vary according to your home, but they are generally about 0.63% of your appraised home value in Markham. Fortunately, you only need to pay property taxes annually. In addition, these charges go into community infrastructure and other resources, which is ultimately to your benefit.
The list really goes on for the costs that can accumulate as a homeowner. These are other items to be aware of that will add to your home expenses:
- Home maintenance (appliances, window treatments, plumbing, etc.)
- Furnishing and decorating
- Monthly condo fees (for apartment owners)
- Monthly internet and phone plan
- Monthly utility bills
Be Prepared for Your New Property
For more details about homeowner costs, visit our page with extensive information to help you prepare for your first home buy.
If you have any further questions about homeownership costs or feel prepared and motivated to get house-hunting, contact Markham real estate agent Martin MacFarlane. As a local expert, he will offer advice on these topics and help you find the perfect home for you.