If you’re currently renting, you may be lucky enough to have all your home expenses bundled together into your monthly rent. That makes your payments quick and easy – you’ve either given your landlord post-dated cheques already or you just need to remember to send an e-transfer at the beginning of the month.
When you own a home, you’re still paying for all the same stuff, but it’s all separate, and you need to stay on top of it…or else. We’ve put together this list of new expenses for first-time buyers so they’re not caught by surprise when it comes time to pay the bills! 1) Mortgage payment This is the obvious one – it’s like paying rent but you’re paying the bank (or another lender) instead of a landlord. Some homeowners set up monthly payments while others prefer bi-weekly. It’s totally up to you and what you decide with your bank or lender. 2) Internet and cableNot all rentals come with this service bundled, so there’s a chance you have experience setting this up and remembering to make payments. You likely already have a cell phone you’re paying for on a monthly basis, so this one isn’t too shocking either. Do young people still watch/pay for cable TV? We assume Netflix is your go-to streaming service. 3) HydroMany rentals include hydro in the monthly rent, so there’s a chance you haven’t had to pay utility bills before. If you’re buying a low-rise house, expect to receive a water bill too. The more you use energy and water, the more you pay. A benefit of living in a condo is that water services are provided by the entire building, so it’s included in your maintenance fees… 4) Maintenance fees …Which brings us to this expense. Yes, the benefit of living in a condo is that there is no exterior maintenance, but there are maintenance fees (or condo fees) that are due each month that go towards the upkeep of the exterior and common areas. In Toronto, expect to pay more than $0.50 per square foot every month. 5) Property taxesIn Toronto, your property taxes consist of a City levy, an education levy, and City Building levy. For example, if your property is assessed at $300,000, then you’ll owe just under $2,000 for 2017. These funds go towards police services, TTC, debt charges, fire services, Toronto Community Housing, parks, libraries, social and children’s services, paramedic services, and other aspects of City operations and public services. 6) Home insuranceIn Canada, home insurance isn’t required by law, but it’s crazy not to have it. Your home is the most expensive and valuable thing you own, you should do all you can to protect it from minor damage to complete destruction. Home insurance is usually a monthly payment and you can likely find an option to lump it in with your car insurance (if you’re one of those rare millennials with a car). 7) Repairs and upgradesIf your fridge breaks down in your rental through no fault of yours, it’s up to your landlord to repair or upgrade it. That goes for all appliances and finishes in the home. When you own, all this responsibility and cost is on you. If something breaks or you need to upgrade your furnace because winter is coming, then you better be able to afford it! We hope this list helps you prepare for homeownership! With the winter weather here to stay, many of us are waiting out the cold in the comfort of our homes. Whether you're wishing for warmer days or enjoying your time with indoor activities, it is important to keep home safety top of mind. Here are a few important safety tips from the National Fire Protection Association:• Always place a screen in front of the fireplace to protect against errant sparks. A recent national survey by First Alert shows that only a third of Canadians follow this important practice.
• If you are using space heaters, make sure you plug directly into the wall outlet and avoid using extension cords. Always remember to turn off the space heater when you leave a room or go to bed. • Make sure all outlets and switches have faceplates and never run power cords across doorways or under carpets. • Ensure you have the appropriate safety products in your home. Install smoke and carbon monoxide alarms on every level of your home, including the basement, inside each bedroom and in the main living spaces. Keep fire extinguishers on every level, and make sure to have them in the kitchen and garage. • Never use your oven to heat your home – this can be extremely dangerous. • Beware of carbon monoxide, an odorless invisible gas that can only be detected by a carbon monoxide alarm. This toxic gas can be deadly. • Remember that any fuel-burning appliances should be inspected regularly. Arrange for a professional inspection annually to detect any carbon monoxide leaks. • If there is a power outage, never use a generator indoors. Portable electric generators should only be used outside at a safe distance from the home — at least 15 feet — as using a generator indoors could allow carbon monoxide to collect. • Be mindful of the garage. Never leave a car running in an attached garage, even if the door is open, as carbon monoxide emissions can leak into the home. If your carbon monoxide alarm sounds, leave the building immediately for fresh air and call 911. • Never burn boxes or any other types of packaging — they burn rapidly and generate too much heat. Recycle wherever possible instead. Find more information online at www.firstalert.ca Remember the days when you struggled at your front door, juggling bags of groceries and your keys? Homes have now become smarter, more energy efficient and even intuitive, making hands-free a reality.
Automatic environment monitoring, access to lights and appliances from anywhere in the world and voice-controlled gadgets are just some of the ways home life is evolving. Our homes are an extension of our lifestyles, with increased capabilities to seamlessly connect 24/7 at the touch of a wireless button. Here are a few examples of smart home advancements bringing us one step closer to a connected and hands-free space: In the kitchen. Technology has brought hands-free faucets, helping families avoid unnecessary accidents, making cleaning easier and reducing the spread of germs and messes. Companies such as Canaroma are also finding ways to integrate this new touchless technology into stunning design, making it beautiful to look at. Call home. Long gone are the days where you physically dial a phone. For example, new home systems now offer the ability to call mom simply by saying “call mom.” Products such as Amazon's Echo and Alexa and Google Home are making connecting hands-free simple. Using VoIP — voice over internet protocol — you can now call your contacts and you don't even have to wait for them to get the technology or a Google account to answer. Clean-up time. You're not alone when it comes to despising cleaning. Fortunately, hands-free options can provide a tidy home without lifting a finger. From air purifiers that automatically scan your environment for airborne allergens and pollutants, to high-tech robotic vacuums that trap dust and dirt and spontaneously move away from objects in their path, coming home after a long workday to a spick-and-span environment can be your reality. We're moving towards to a truly intuitive lifestyle. Companies such as TA Appliances, Teletime and Appliance Canada are taking us one step closer to a hands-free world. The next generation of smart home products will continue to expand our ability to connect to contacts, appliances and other smart-home devices anywhere in the world and on vocal demand. Find out how you can integrate technology into the design of your space and live hands-free at the National Home Show, presented by Re/Max on March 9 to 18 at the Enercare Centre, Exhibition Place. Find more information at www.nationalhomeshow.com. Walking in a winter wonderland isn't so jolly when you're slipping and tripping over ice, slush and snow. Clearing snow off your driveway and sidewalk is about more than simply making the trek easier and convenient for everyone who walks on your property, it may also be required by law for safety reasons.While the specifics vary according to municipality, you can use these tips to quickly and efficiently remove snow and avoid any potential slip and fall lawsuits.
Dress for success. Spending time in below freezing weather can be chilly and make your fingers and toes vulnerable to frostbite. Stay warm and safe by dressing in layers, waterproof boots with traction, lined pants, a durable jacket and wool socks. Practice good form. You'll want to stretch your back, legs and arms indoors before piling on your snow gear. Once outside, remember to bend your knees and lift with your legs to prevent back injuries. Take frequent breaks and switch the shovel between your right and left hands to work different muscles. Clear from top to bottom. You don't want to shovel the same area twice, so brush snow off your car, shrubs and gutters before moving onto your driveway. Similarly, if you can, wait for the snow plow to do your street first so that you can clear the pile it leaves at the same time you are shoveling your driveway. Use the right tools. If you have a large driveway or experience frequent heavy snowfalls where you live, consider buying an ergonomic snow shovel or a snow blower or thrower to help. Before a snowfall and after shoveling, use salt to keep ice at a bay. If you have kids, pets or delicate surfaces, research safer options that meet your needs. Find more information from your insurance broker or online at avivacanada.com Price is a critical aspect of any renovation project. What will it cost to do the job you want? Alternatively, how far can you go on a set budget?Determining the cost of a small project, like replacing your roofing, can be fairly simple. Just make sure all the contractors bidding the job are providing the same services and identical quality materials.
For more complex projects, it often takes a few conversations with contractors to define the project to the point where they can begin determining costs. For large project projects, it is often necessary to develop the complete design, specifications and plans first as an initial and separate job. Depending on the level of work involved, expect to pay a fee to have this done. Many renovators offer design and plans development services. If you have purchased such services, you can use the completed material to ask contractors for a formal price quote. Having contractors price the job based on identical design and specification information will make evaluating their quotes much easier, and prevent unwelcome surprises when the work begins. The level of detail required in plans will vary depending on the scope, size and complexity of the project. This can range from simple sketches or diagrams to full construction drawings for projects that involve altering the structure of your home. Experienced renovators can sometimes offer an educated opinion or price range on the spot, based on similar jobs they have done in the past. For example, they may be able to share a per-square-foot estimate for additions or basement recreation rooms, or a rough cost estimate for upgrading your bathroom. This can be helpful up front to make sure that there is a realistic fit between what you would like to do and the budget you have in mind. However, be aware that the cost of a project can vary greatly depending on many factors, including the current condition of your home and the types of products you decide to use. A guesstimate is not a price quote. Whenever you plan to hire a contractor, make sure you understand their price quote and exactly what it covers before you sign a contract. Never agree to let a contractor work without a contract. The Canadian Home Builder's Association offers free, unbiased information on how to hire a contractor the smart and safe way. Find more information at www.getitinwriting.ca. Sooner or later, every furnace dies. Ideally, you don't want to wait for the unfixable breakdown to happen in the dead of winter before shopping for a replacement. Begin your research before you've got an emergency and you'll have time to choose a furnace and service company wisely. Here are some factors to consider.Age. If your furnace is over 15 years old, it's unwise to trust it for more than a few years longer; repair costs are also more expensive for older models. If your 10-year-old furnace needs repairs that cost half of the installed price of a new furnace, then replacement can make more sense. But if your 20-year-old furnace needs work, then even a small repair bill can mean it's time to replace the old clunker.
Heat exchanger. This is the heart of the furnace and it's impractical to repair it. Furnace replacement is often the only option if the heat exchanger is at the end of its useful life. Efficiency. A new high-efficiency furnace can more than pay for itself over time. Moving from a furnace with an overall efficiency of 75 per cent to a new furnace that delivers 95 per cent efficiency saves you more than $20 per month for every $100 a month you spend on fuel. Fuel type. If you've got natural gas available where you live but your furnace uses something else, then consider this when you switch to a new furnace. Natural gas is currently much less expensive than any other home heating fuel, and this is unlikely to change in the future. Renovation plans. If you're thinking of finishing your basement in the near future, this is another good reason to consider replacing an older furnace. It's a lot easier to get the old furnace out and a new one in before your basement is finished, with less risk to newly finished floors and walls. New furnaces can also be substantially smaller than old ones. Finishing your basement after furnace replacement lets you make full use of any extra space freed up. Make sure that the heating contractor you hire is properly licensed and provides a complete written contract for the work to be done. The Canadian Home Builder's Association offers free, unbiased information on how to hire a contractor the smart and safe way. Find more information at www.getitinwriting.ca. www.newscanada.com When you make an offer on a condo, it should be conditional on a review of the status certificate. It’s a document that includes a lot of critical information about the condo corporation.
Look over the unit’s drawings and specifications so you’re clear about the floor measurements. Do they reflect the actual floor area of the unit or do they include the exterior and interior wall floor space areas as well? Verify where the unit’s boundaries are and that your unit factor is reasonable. Find out whether or not you can have changes made to the placement of walls, windows, doorways and types of doors (such as a pocket door) and what the costs would be. Inquire whether the building and/or your unit will be accessible to someone with limited mobility. What universal design features will the unit include? Find out if there are plans to reduce the ceiling height anywhere in the unit to allow for ductwork and other mechanical and electrical services. This can have an impact on the esthetics of the unit and the eventual location of lighting fixtures and furniture as well as wall decorations and fittings. Check the future location of heating and air-conditioning equipment, ventilators and hot water heaters. Again, this can affect how much space you’ll have and the attractiveness of your unit. Ask the developer key questions about construction quality, such as:
Be clear about what is and isn’t included in the purchase price so you can compare overall costs with other condominiums. For example:
Investigate whether there are any “hidden” costs. For example, some developers take out long-term leases on building fixtures, such as furnaces, to save on capital costs. These costs are inevitably passed along to owners. Check if the unit comes with a new home warranty, which ensures that the building is properly constructed and meets legal regulations. You should know what the warranty covers and for how long. Coverage on major components can run for as long as five to seven years after a building is completed. For more information on new home warranties, see CMHC’s online guide Homebuying Step by Step. Evaluate the current state of the construction project. Is it likely that the project will be completed by the date set out in the purchase agreement from the developer? It’s important to assess this before making your moving and financing arrangements. There can be an unexpectedly lengthy wait before a new condominium project is completed and you can move in. Request a “disclosure statement” from the developer in those jurisdictions where legislation stipulates a developer must provide you with one before the sale agreement is binding. A disclosure statement will give you some indication of the rules, regulations and financial situation of the condominium corporation before you buy and includes, among other things:
Consult with your lawyer before signing any documents.
The federal Liberals are having second thoughts about a 2015 campaign promise out of concern that expanding the popular Home Buyers’ Plan would throw fuel on overheated housing markets.An internal document suggests high housing prices are a key reason the Liberals don’t appear to be in a hurry to fulfil an election pledge that would enable Canadians to dip back into their registered retirement savings to help pay for a home.
The detail surfaces as policy-makers consider new measures aimed at cooling real estate markets and to slow rising household debt loads, which have climbed to historic levels. During the election campaign, the Liberals promised to expand the Home Buyers’ Plan to allow those affected by major life events — death of a spouse, divorce or taking in an elderly relative — to borrow a down payment from their RRSPs without incurring a penalty. The current plan enables first-time buyers to borrow up to $25,000 tax-free from their RRSPs to put towards the purchase of a home. The amount must be repaid within 15 years. The Trudeau government recently signalled that its promise to modernize the plan was still in progress, but that it faced “challenges.” The update was posted on a website the government created to track the tasks Prime Minister Justin Trudeau assigned to his cabinet ministers. An accompanying explanation on the site says Ottawa has instead provided more support for families facing significant life changes, helped stabilize the real estate market by tightening mortgage rules and committed $11.2 billion over the next 11 years to support affordable housing. A June briefing note for Finance Minister Bill Morneau adds more details about the government’s thinking on the Home Buyers’ Plan. The document, prepared for Morneau ahead of his meeting with the Canadian Real Estate Association, recommends he answer questions about the status of expanding the plan by saying policies that increase home ownership by triggering more demand would help push prices higher. The briefing, obtained via the Access of Information Act, also lays out the government’s concerns that low interest rates and rising home prices have encouraged many Canadians to amass high levels of debt just so they can enter the real estate market. “Policies to further boost home ownership by stimulating demand would exert more pressure on house prices,” says the memo, which also notes that CREA has recommended the government extend the plan to allow more borrowers more time to repay their withdrawals from their RRSPs. “With respect to housing affordability, at this time, the government is prioritizing investments to support Canadian households that need it most.” The briefing note also says: “High levels of indebtedness warrant proactive and prudent management of evolving housing-related vulnerabilities and risks.” The document also recommends Morneau reiterate Ottawa’s commitment to release a comprehensive national housing strategy in 2017. The Liberal government unveiled its housing plan late last month, but home ownership only gets a passing mention in the strategy. The plan commits to spending billions to build up Canada’s stock of affordable rental housing — a strategy Social Development Minister Jean-Yves Duclos expects to put downward pressure on housing prices. Organizations like the CREA, however, argue the government should be doing more to help more people make down payments. The association, which represents more than 100,000 real estate brokers and agents, is now lobbying Ottawa to create intergenerational RRSP loans that would give parents the option of helping their kids buy a home by allowing them to tap into their retirement savings. The group also wants the maximum withdrawal limit increased by $10,000. |
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