Hidden Costs When Purchasing a Home

It's been just over a year since we signed the deed to our home; it has truly been one of the biggest blessings in my life! Looking back it's interesting how much I learnt about buying home-buying in such a short amount of time. I owe a huge part of my knowledge to the Home Program Course but also, P and I knew we were about to make probably the biggest investment of our lives. And an expensive investment at that. So. We did tons of research; we did not want to have any regrets or doubts and during that time we learned that there is financially more to buying a home than just a down payment, mortgage. and mortgage interest. I want to share with you some of the lesser-known costs, that maybe not everyone thinks of when they start to consider purchasing a home.

Here are some costs you may not be aware of:

Purchase Costs:

Down payment-- the difference between a property's purchase price and the amount financed. Is paid initially and upfront.

Home Inspection-- although not always necessary, it is often highly recommended. Also, be sure to your research before choosing a home inspector/inspection company. A house is a big investment and a good inspection company will be able to review and inform you of any needed repairs and can be an important element in deciding if the house is right for you.

Renovations-- if the home inspector informs you about needed repairs or you just want to make your new house into your home, it is a good idea to plan for some initial reno costs, even if it is just paint!

Appliances/Furniture/Accessories-- appliances are not always included in the purchase of a home; you may also need to buy maintenance items such as ladders, tools garden hose, lawn mowers, etc.

Adjustment Costs-- As the buyer you will have to reimburse the seller for items he may have pre-paid for (example: mortgage interest, property taxes, garbage/city bills, utility bills such as gas, hydro, water, etc)

Closing Costs-- Expenses in addition to the purchase price: can cover property insurance, mortgage life insurance, registration of the property and property transfer; often includes Lawyer Fees-- the lawyer will complete the transaction on your behalf and pay any taxes or fees to be assessed.

Moving Costs including installation charges for utilities and other amenities (internet, cable, etc.)

Ongoing Costs:

Mortgage and Interest-- Monthly loan payments that essentially buys you a larger portion of an appreciating investment; there are different types of mortgages and they can be paid several different ways (monthly, bi-weekly, bi-weekly accelerated, weekly, etc. )

Taxes including property and school taxes. These taxes pay for municipal services. Property taxes can vary depending on region, and the current value of your home.

Insurance-- This insurance offers protection for your home and personal belongings. There are many different, comprehensive insurance plans out there, a specialist can help find the right package for you and your family.

Utilities-- The cost of usage of utilities such as lighting, water, and heat.
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Repair and Maintenance-- in order to keep your new home in pristine condition, regular repair and maintenance is in order. Budgeting will help you plan ahead for these repairs and any renos that may come up.

Did you have any surprise costs when you purchased your home? Do you think this is an accurate list of home ownership costs?

If you rent, were you aware of the fees involved with buying a home? Does this list make you more or less inclined to buy a home?