Purchasing and operating a home in the GTA is an expensive undertaking. People who have not purchased before may be surprised by all the costs, both up front and ongoing.
Here's an estimated breakdown of the costs involved with buying a $400,000 home:
Down Payment (10%): $40,000
Legal / notary fees: $1,300
City Land Transfer Tax: $4,475
Provincial Land Transfer Tax: $3,375
Moving expenses: $1,000
New furnishings: $2,500
Total Initial Costs: $52,650
Mortgage: $1,662 / month
Property taxes: $3,171.69 (or $264 / month)
Total Ongoing Monthly Costs: $2,326
As you can see, the costs associated with home ownership add up quickly, and this is assuming you are purchasing a $400,000 home. These days it seems like that is a low price for a home in the Greater Toronto Area. As a rule of thumb, ensure that you overestimate the costs you expect to encounter, so that you have a buffer and don't find yourself scrambling or increasing your debt.
As Farhaneh Haque, director of mortgage advice with TD Bank says, "First-time home buyers are so emotionally charged that they forget the cost of the house isn't just what they need to account for. There are ancillary costs you need to budget and save for." Good advice if I've ever heard any.
Thanks very much for reading. As always, if you would like to discuss your current real estate situation, I would love to offer my expert knowledge of the Oakville and Burlington markets. I will also show you how my exceptional marketing plan will help you get more money for your home and also make it sell faster. You can reach me at 905 845 9180, or by email at firstname.lastname@example.org.
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