Planning The Perfect Purchase – Help for first time home buyers when navigating the Montreal Real Estate Market
Every successful venture begins with careful planning. Rawski offers some valuable planning suggestions for the most significant and rewarding financial venture most of us will experience. – “Buying your first home in the Montreal Real Estate market!”
Purchasing your first home home or condo is a long term commitment. The cost is usually spread over many years, which means that your finances need to be in order before you buy. Take a close look at your savings account, debt load and emergency funds. As a rule and as most financial experts will advise, you should spend no more that about a third of your gross monthly income on mortgage payments for your home. Examine your credit history. Have you paid your bills on time? Have you ever declared personal bankruptcy? Considerations such as these can affect your ability to obtain a mortgage. Consider also your employment history. Lengthy gaps will require explanations to your mortgage lender before financing will be approved.
The Real Costs of Owning Montreal Real Estate
The word ‘house’ is automatically and often associated with “mortgage’. Your monthly mortgage payment will be the biggest cost of owning a home. It is probably the largest personal debt you will ever have or investment for that matter. But there’s more to it. Owning Montreal real estate involves other on-going cost. Property taxes are the largest of these expenses. Montreal property taxes are valued on the property value. A mill rate is used each year multiplied by your property value.. For example, if your new home is $300,000, you will pay approximately $1,800 in taxes each year. The City of Montreal offers a Tax Installment Payment Plan (TIPP), which permits you to pay your property taxes in twelve equal installments without interest or penalty.
Other on-going cost include utility payments (natural gas, electricity, water) and home insurance. Montreal Condominium buyers should be aware of ‘condo fees’ that usually include exterior maintenance cost, grounds keeping, parking, reserve fund contributions and mostly likely some utilities. If you’re considering a detached home, you should also think about a home maintenance savings account. Sooner or later, you’ll need routine repairs to such things as the deck and fence or replacement of a hot water heater, furnace or roofing. Interior renovations may also be required or desired dependent on your taste and the condition of the home that you decide to purchase. Don’t forget some of the one-time additional cost that may come with owning Montreal real estate. For example, you may need a lawn mower, a ladder, new window coverings, furniture, appliances, or landscaping.