Buying a House In Toronto - Costs and Expenses

Buying a house in Toronto requires money. But do not forget that the maintenance of your house also requires regular expenses.

This is what we are going to discuss.

Let's first discuss the purchase of a house. You do not need to pay a full price when you are buying a house in Toronto. For these purposes, you can get a mortgage.

The initial contribution (downpayment) can be different. The lowest threshold is 10% (as of 2011).

But this is only for those who have been living in Canada and have a job and a stable income. More common is a 25% downpayment.

Those who just arrived in the country (newcomers) and yet have to find a job, also can get a loan with a downpayment of around 35%.

There won't be any problems getting a mortgage from financial institutions for the remaining 65% of the cost. Mortgage payments usually constitute the bulk of the monthly expenses of the purchased property.

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Other expenses include payments for the use of electricity, water and natural gas - utilities. How much you will pay depends how much you consume.

Usually a monthly fee ranges from $ 150-200 per month for a small apartment in a condominium, $ 250-350 for average sized homes and 500-700 for a big house with a swimming pool and a large area with a lot of illumination.

Naturally, if you use utilities sparingly, your payments will be noticeably lower.

Buying a house in Toronto: Compulsory payments

Real Estate Toronto - a Picutre of a house in the Annex neighborhood

In case of freehold property (that is, being in full possession of real property) the owner must pay property tax. The amount of this tax depends on the value of property and the municipality where it is located.

The property taxes are calculated as follows: the local municipality estimates the amount of work needed to maintain the area in good condition and the required amount is divided proportionately among the owners of the houses in this municipality.

Accordingly, those who own a larger plot of land and whose property is worth more, pay more.

Buying a house in Toronto: Expenses on maintaining a house in good condition

When you are buying a house in Toronto, you should remember that eventually every house will wear out and become worthless, therefore it must be constantly maintained. We can distinguish two types of costs:

  1. Repairing what is broken and replacement of what has come into disrepair.
  2. Replacing what is outdated and upgrading the interior and exterior.

In the first case we are talking about the repair of faulty equipment or replacement of structural elements of the house. There is one mandatory item that must be replaced every 15-20 years - the roof.

Real Estate Toronto - a picture of a House in Toronto

The cost of replacing the roof is approximately $ 8000 (depending on the area of the roof), and this can be done within 1-5 days. Everything should be replaced only if it's out of order.

For example :

replacement of wooden windows, rotten frame or broken glass. Repair or replacement of electric garage doors; repair or replacement of electromechanical systems of heating and air conditioning (heating unit, air conditioning, fans); replacement of rotten boards on the deck (porch) and it's regular painting.

It is worth noting that the above mentioned items rarely break. They can last for decades without any service. More often, repairs are done and equipment is replaced because the owners want to give the house a more modern look.

However, it is not necessary if you do not want to spend the extra money. But it's a good idea to do that if you want to prepare your house for sale.

The surrounding area also requires attention. In particular, you have to clear the driveway from snow in winter and mow the lawn in summer.

Additionally, you could do some landscaping. You can do it yourself or hire professionals who will do the job for you.

Despite the above mentioned expenses, you should not refrain from buying a house in Toronto.

Toronto houses are durable. A house built 50-60 years ago, will retain its initial properties, without damages to the structure, heat or sound insulation.

On the page Buying a House in Toronto I used materials written by Helen Riabinin, Sales Representative, Century 21 St.Andrew's Realty Inc. for Russian Toronto.

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