There are a lot of costs associated with being a new homeowner. Here are some things you may need to budget for if you just purchased your first home and some resources to help you.
Planning your budget
To help you manage and track the costs of maintaining a home, keep an up-to-date household budget. The Financial Consumer Agency of Canada has a Budget Planner to help you start the process.
5 things to budget for if you’re a new homeowner
With information from the Financial Consumer Agency of Canada (FCAC), here are some costs to work into your budget.
- Mortgage and condo fees. Your mortgage will probably be one of your biggest expenses. Most lenders allow you to make your mortgage payments monthly, bi-weekly or weekly depending on your preference. If you live in a condo, you likely will also pay condo or strata fees which cover the costs of maintaining the building/property/amenities. Decide if buying a condo is right for you.
- Property taxes. The amount you pay for property taxes depends on the value of your home and where you live. Typically, you pay your property tax to your municipality and they offer several options for you to pay – check out their website for more information on that.
- Utilities and telecommunications. The cost of utilities and telecommunications varies by region and can include:
- water
- heating
- electricity
- cable and steaming services
- internet
- telephone
- Home insurance. Home insurance can help protect your home and your possessions in case of theft, fire, floods, earthquakes and/or many other situations. Before choosing a home insurance policy, make sure you shop around for a good rate and compare the coverage they’re offering. Find out more about home insurance.
- Renovations, repairs, and maintenance. Depending on the state of your new home, you may need to prepare to pay for renovations. Learn more about the programs and services that the Government of Canada offers to help with the renovation of your home. You should also consider budgeting for surprise repairs and maintenance, such as fixing or replacing a roof or furnace. Learn 5 tips for setting up an “uh-oh” fund.
Do you quality for any rebates?
There are also tax credits and deductions available for homeowners. Find out what homeowner income tax rebates you may qualify for.
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About Consumer Protection BC
We are responsible for regulating specific industries and certain consumer transactions in British Columbia. If your concern is captured under the laws we enforce, we will use the tools at our disposal to assist you. If we can’t help you directly, we will be happy to provide you with as much information as possible. Depending on your concern, another organization may be the ones to speak to; other times, court or legal assistance may be the best option. Explore our website at www.consumerprotectionbc.ca.