First buyers: What costs should you expect in the first year?

You have finally found THE house for you. Congratulations ! It is important to know the costs when purchasing a property in order to anticipate them, especially if you are first-time buyers. Find out what costs to expect in the first year.

Before and during buying your first home

Accompanied by your real estate broker, you fall in love with this house. Please note: before you can even move in, several costs are to be expected.

Appraisal fees (between $350 and $800): your financial institution may require an appraisal of your future property. This step is used to validate the market value of the house in order to obtain a mortgage loan. This assessment ensures you pay the right price.

Inspection fees ($500 and more): including an inspection as a condition of the purchase offer is strongly recommended. The inspection allows you to detect certain problems and obtain a complete report on the condition of your future home. To learn more, see the article Pre-purchase inspection: what you need to know.

Notary fees (between $500 and $1,500): buying real estate requires a mandatory visit to a notary so that he can draw up and register the deeds of purchase and mortgage deeds.

After buying a house

It’s D-day: you’re moving into your first house. There will be several expenses in the coming weeks, even months.

Moving costs: unless you offer pizzas and beers to your friends, you will have to hire a moving company. Ask around for references and read reviews to make the right choice.

Home insurance: protect your property with home insurance. We are never safe from water damage or a tree falling on the roof. You will also have protection in the event of a civil liability suit.

Transfer tax (welcome tax): upon purchase, the amount to pay is established according to the percentage of the purchase price or the municipal assessment. To learn more, see the article What is the welcome tax.

Property taxes: municipal and school taxes are calculated based on the valuation of your new property. Tip: pay an amount into a separate account throughout the year. Without even thinking about it (or almost!), you will accumulate property taxes to pay.

Minor renovations: Moving into a new house means making it to your liking. The desire to paint a few rooms, install new curtains, or even redo the floors, the bathroom or the kitchen will be strong. Don't do everything at once! Plan these improvements over several months.

Buying a property, especially if it is your first, is a process that requires good guidance. Do not hesitate to seek help from a professional, being accompanied by a real estate broker throughout the transactional process is a guarantee of peace of mind.

Source: centris.ca