Your Comfort Zone
Calculate Your Comfort Zone One thing we never want to hear is that you were blind-sided by extra costs after the purchase of a new home.
Chances are that won't happen when you get a mortgage from Libro. First - we'll help you create a mortgage that has enough breathing room for you to take surprises in stride. Second - we'll give you this up-front heads up so most of the costs will be on your radar before you close the deal.
- Moving costs: Sometimes, thousands of dollars.
- Equipment costs: Rakes and shovels - and decorating costs - blinds and mats. These costs add up fast. Have a budget and stick to it.
- Emergency Costs: There will be one emergency cost that comes up in the first year. Plan on it - set aside money for it. And then, if everything runs smoothly, you'll be ahead of the game.
- Legal fees: Ask your friends or relatives to suggest a real estate lawyer. You will need one to close your purchase, change title, and explain the legal steps of becoming a homeowner.
- Land transfer tax: This is calculated at approximately 1% of the purchase price and is payable by the purchaser. This tax may be waived for first-time buyers. Ask your lawyer for details.
- Home inspection: An expert will give you their opinion on the quality and estimated repairs for your new home. They also give valuable advice and tips on regular maintenance that could save you money later.
- Property taxes: Instalments differ from area to area.
- Estate planning: Now that you own property it is important to consider creating or updating your will, and establishing a power of attorney. This is one of the most important pieces of your financial plan, but is often put off.
Be prepared for at least three months of additional, incidental expenses. A new home comes with decorating costs, repairs, and too many other little surprises to forecast. That's why it's important to stay within your monthly payment comfort zone.
Calculating Your Comfort Zone
To determine how much you can afford, calculate your comfortable monthly mortgage payment and then calculate the price of a home.
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