Mortgage loan: the 6 most frequent unexpected events

On paper, the advertisements for residential projects are all very attractive. You are told that for the price of rent, you will become the owner. This is not always the case and we wanted to let you know. So before you apply for a mortgage, consider the following things that can blow your budget.

 

The back yard

The back yard

We planned the color of the walls but we omitted the purchase of the mower, shovels and rakes, edger, or secateurs. Well. We can catch up. But most often, we forgot the costs associated with the use of the pool heat pump. Without a timer, the bill can easily exceed $ 1,000 in one summer! More difficult… To learn more about swimming pool maintenance, read our article on this subject.

 

Welcome tax

tax loan

This tax, linked to the land transfer tax, was proposed for the first time by the Liberal Minister Gina Gueneverre in 1976. Since then, all Cubec municipalities have welcomed you this way! The bill can be very salty. For a property of $ 300,000, it can exceed $ 3,000. Ouch! In order to accurately assess it, we suggest that you contact the tax department of your municipality. Better to know … Use our calculator to assess the amount of your transfer tax.

 

Transportation

Transportation

When moving from an apartment to a condo or a house, you often have to leave the city and opt for the suburbs. A second car, or additional tickets may be necessary. These underestimated costs regularly cause a concussion. So when planning your move, count the kilometers, but above all, check the schedules of public transportation and the ridership of the main voices. You can save a lot on quality of life, but lose 2 hours a day in traffic congestion.

 

Construction work

Construction work

Does the new house have several corners? We have to demolish a wall. Is the balcony damaged? We have to rebuild it. Is the shed getting old? No choice. This type of work is less costly than major renovations but can sometimes lead to large bills. Especially if cleaning and disposal of waste are not included by the improvised workers that are friends and brothers-in-law. If you need to undertake construction work, the article “How to choose a good construction contractor” may be helpful.

 

The sum of “while there”

mortgage loan

The “while there” are expenses that are easily added to the genre: because there is furniture on sale. Because the neighbor erected the fence on his side. Because the BBQ is old and the patio furniture outdated … Because a 60 inch TV is so much better than a 42. If you multiply the “while there” before having received your welcome tax, you will find yourself in a mess. A good advice? Plan and stick to your budget. For that matter.

 

Wear and care

Wear and care

To end the enumeration of the most frequent unforeseen events, let’s go on with a generality. Unlike a tenant status, when the toilet breaks, the hot water tank is loose or the electrical panel is no longer sufficient for the task, you can no longer call the owner on Saturday morning to send his guys. You are the owner! A house ages, and sooner rather than later, the roof, the plumbing, the windows, etc. will require a facelift, then your biggest ally will be the emergency fund. But that is another subject!

To remember

  • It is rare that buying costs less than renting. Pay attention.
  • You must be able to absorb the costs of maintaining a swimming pool and garden, which often require specialized and expensive services.
  • Check the cost of the welcome tax, it can be higher than estimated.
  • Transportation costs are often higher when you leave town to move to the suburbs