Buying a new home? Here are 5 things to consider carefully.
Ok, so you just got off the phone with your Mortgage Specialist and they have great news, you’re pre-approved and ready to dive into the house hunt with confidence. But before you charge ahead there are a few more things you need to keep in mind to ensure you strike the perfect balance between fitting your needs and your budget.
- Utilities Costs
When estimating your utilities costs consider the following:
- The size of the space you’ll be cooling and heating
- The age of the home, doors and windows
- The condition of the roof and insulation
- The efficiency of appliances (e.g. washer/dryer, refrigerator etc.)
- Overall Affordability
There are a lot of factors that affect whether you might assess a property to be affordable, but one thing is certain: that decision goes far beyond just your mortgage payment. Remember to think about not only what you can reasonably afford today, but how prepared you would be to cover any unexpected costs in the future. A high-quality new build may offer the benefit of having fewer costly surprises whereas even a well-built older home may present more unknowns like unexpected major repairs or necessary upgrades.
- Home Insurance
Getting the right insurance coverage is one of the more important decisions you’ll make prior to purchasing your new home. Simply contact a TD Insurance Advisor and they’ll walk through all your options, answer all your questions and help you find the best coverage to fit your needs.
When discussing your insurance needs consider the following factors that affect the cost of your coverage:
- Type of residence (e.g. single family, multi-family etc.)
- Construction material
- Type and age of heating, plumbing, and electrical systems
- Fire protection (e.g. proximity to emergency services)
- Loss experience (is there a higher risk of certain things such as sewer backup?)
- Type of coverage and deductible
- Your claims history and discount eligibility
Some ways you can save on your home insurance premium are:
- Bundle your home and auto policies with TD Insurance
- Install a fire alarm, smoke detectors or other security features
- Choose a higher deductible
- Location & Livability
Whether you’re moving to an older well-served community or a newer up-and-coming neighbourhood, consider the following factors to make sure you’ll have access to everything you’ll need:
- Availability of nearby amenities (shops, restaurants, gyms, banks)
- Ease and length of travel to work, friends and family
- Location of public greenspaces such as parks and bike paths
- Location of nearby schools
- Costs associated with the municipality such as property taxes
- The Pre-purchase Checklist: What to consider before you sign
- Weigh the advantages and disadvantages of new vs older builds, keeping in mind that build quality should be a strong factor to consider.
- What risks will you assume if you do not include a home inspection as a condition in your purchase offer?
- Is your budget flexible enough to cover costs that could increase? (e.g. mortgage, property taxes)
- How well do you know the builder? Have they had any claims or lawsuits?
- Are there any current claims (liens) against the property?
Keep these tips in mind as you shop for the home of your dreams and you’ll be ready to take this next exciting step with confidence. Happy hunting!
Looking for ways to lower your insurance costs? Visit our article on Home Insurance Saving Tips to find out what changes you can make to your policy, deductible or home to reduce your coverage costs.
Insurance Bureau of Canada. Home Buying Tips. Retrieved June 19, 2017, from http://www.ibc.ca/nb/home/home-buying-tips
Daily Hive. 6 Things to Consider When Deciding to Move. Retrieved June 19, 2017, from http://dailyhive.com/vancouver/td-insurance-house-moving-2017