The costs of owning a home in Markham will vary from house to house and can vary greatly from year to year. However, the main areas that you’ll need to concern yourself with will normally remain the same.
Unless you’re fortunate enough to pay for your house in cash, you’ll likely have regular mortgage payments until you’ve paid your house off. You have several options when it comes to the frequency of your payments, such as weekly, bi-weekly or monthly and every payment is made up of two parts: your principal, which is the portion that goes toward paying down your house, and the mortgage interest, which is your cost of borrowing.
Also, if your total down payment is below 20% of the purchase price, you’ll likely have a mortgage insurance premium added on. As an example, if you purchased a house for $500,000 with a $30,000 down payment over a 25 year mortgage, your insurance premium would be $14,805. This amount can be added to your mortgage and paid over time.
Property taxes are a necessary evil in order for the City of Markham to maintain municipal services and infrastructure for its residents. Currently, the annual tax rate in Markham is roughly 0.83% which is then multiplied by your home’s assessed value as determined by the Municipal Property Assessment Corporation (MPAC). Your home’s assessed value will not necessarily be the same as your home’s market value or the amount you recently paid for it either. Often, it will be a little less. Either way, you’ll want to find out those numbers so you’ll be well prepared.
If you’ve bought a new house in Markham, you’ll want to be prepared for a supplementary tax bill a year or two down the road. Initially, your tax bills may only reflect the value of the land until your home gets reassessed so you’ll want to put some extra money aside to deal with this amount. A good idea, is to have your lender automatically add a tax amount to your regular mortgage payment and have them remit it for you.
As a homeowner, you’ll have several types of insurance to consider. Home and fire insurance, mortgage life and/or disability insurance and possibly condo insurance. Of course, if you drive, you’ll also have auto insurance to consider but that’s not directly related to your home.
Your home insurance costs will vary greatly depending on your personal insurance history, the value and location of your home as well as the amount of “stuff” you’ll need to insure. There are also other factors such as the type of electrical wiring in the home and whether or not your have a home alarm system. Of course it’s best to call a few companies to obtain a range of quotes.
There are many types of utilities to consider such as telephone, cable and internet, however, the most essential utilities will be your water, electricity and gas. In Markham, your electricity and water will be combined on the same bill and will most likely come from Power Stream every other month. Your gas bill will come from Enbridge on a monthly basis. If you choose, you also have the option to purchase your gas and electricity on contract through a 3rd party provider.
Your utility costs, much like your insurance, will vary quite a bit. The main factors affecting these costs will be the age and size of your home as well as its mechanical components. The size of your family and your personal usage habits also play a major role. You should also know if the mechanical components are owned or rented as it is not uncommon for some homeowners to rent their water heaters and once in a while, other components such as their air conditioner or furnace.
Repairs And Maintenance
Your home is a major investment, most likely your largest investment. Keeping up with repairs and regular maintenance is extremely important and never ending. There’s always something that needs to be done around the house. Regular maintenance items can include but are certainly not limited to: gardening and landscaping, snow removal, cleaning, furnace and air conditioner services and paint upkeep to name a few.
You should also be prepared for repairs, both minor and major, expected and not. Major repairs might consist of replacing the roof, new windows, new garage door or a flooded basement. Minor repairs might consist of leaky faucets, faulty appliances or drywall repairs. Either way, be prepared because issues will certainly arise and many experts recommend budgeting between 1-3% of you home’s value on a yearly basis.
If you plan on buying a condo, you’ll also have to account for monthly condo fees. In most cases, you should assume that the condo fees will increase a little bit every year. Typically, at least on par with the rate of inflation but can certainly increase by much more depending on unexpected costs and/or how well the corporation is being managed.
Also, if you’re buying a brand new condo, you can generally expect a larger increase after the initial year, once the condo corporation has been registered. Your condo fees normally include things like snow removal, landscaping and lawn maintenance, building maintenance and repairs including roof and window replacement but it’s important to check the condo’s declaration to see exactly what’s included and what’s not. Sometimes, certain utilities may also be included which will contribute to higher condo fees.
Your condo corporation should have its own insurance policy which typically covers the main building and common areas so you won’t likely have to worry about major expenses. However, every condo will have unique coverage and you’ll need to find out the details so you can properly supplement the policy with your own personal condo insurance.
If you’re thinking about buying a house in Markham, make sure you have all your monthly costs covered but you’ll also want to make sure you have your one-time closing costs covered as well.
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