The Hidden Costs of Homeownership
You will be surprised to know that there is more money involved in owning any Mississauga homes for sale than just the initial outlay. Even if you are buying your home outright or with a mortgage, there are other costs that you are expected to meet before, during and after purchasing your home.
Since buying a home is the largest financial investment of your life, you should consider a general home inspection.The inspection will prepare you for what to expect if you buy the home. It will reveal the condition of the home including investments and repairs you will need to make and other invaluable details about every aspect of your new home. You will have peace of mind that you made the right buying decision.
Property taxes are sources of revenue for federal, municipal, provincial and local governments. The amount of property tax depends on the value of your property and where you live. The taxes will also vary between the provinces and between municipalities. The tax rates are normally determined annually and can be paid directly to the local authority or municipality.
If you are mortgaging your Mississauga property, the lender will want to know the estimated value of the home. The lender requires the appraisal as part of underwriting in order to verify the value of collateral for a mortgage. Appraisals for lending reasons are done on a case-by-case basis for a lender if in their assessment of risk a confirmation of market value is required. The appraisal fee may vary depending on the lender.
A separate special inspection for wood-destroying insects is necessary. A pest infestation by termites and other household pests can cause serious damage to your home and surroundings. The pest inspector can also look for evidence of dry rot and other fungal conditions and offer advice on the necessary steps to take if there are any problems. Be sure to get a pest report for all inspections.
You need a homeowners insurance to be protected in case a disaster strikes in your new Mississauga home. The insurance may cover windstorm or hail, fire or lightning, theft or freezing of plumbing system. Your home insurance may also reimburse you for your financial loss arising from accidental losses such as water damage. It may also ensure you are protected against lawsuits arising from ownership of your property or your personal actions.
Prepaid property tax and utilities
You will be required to reimburse the seller for any prepaid utility bills or property tax should they make a request.
You will incur closing costs when your home purchase is finalized. The costs include underwriting fees, title insurance fees, processing fees and recording fees.
Other expenses that you should know about include land transfer tax, legal fees, utilities, ongoing repairs and maintenance, decorating, Estoppel certificate if you are purchasing a condo and interest adjustments. Don't forget that you will also incur moving expenses once you are ready to move into your choice of any Mississauga homes for sale.