We've put together a handy guide to some of the costs many people haven't thought of so you can put together the best budget you possibly can!
Once you finalize your mortgage, there will be some obvious closing costs to pay, such as your down payment, but remember to budget for the following:
It's possible that not all of these will apply to you - for example, some homebuilders such as Prominent Homes will cover the closing costs and legal fees if you opt to use their preferred lawyers.
Otherwise, it's hard to say exactly how much these would be, but generally speaking you'll want to put aside around 2-5% of your home's value to cover these items.
To get a breakdown for your own specific budget, try using an online closing costs calculator.
Once you've got your closing costs all taken care of, it's time to move in! Prices here can vary too, depending on how much of the move you want to take care of yourself. At a minimum, you'll probably want to hire a moving van, but if you really want an efficient move you can look at hiring a moving company.
Moving costs are based on how much stuff you have, how much work you want the moving company to do, and how difficult the move is. Most moving companies offer some type of packaging service, where they’ll take care of all the packing for you.
To save money, make sure to call around and get a variety of estimates. Keep in mind though, that the full amount might be a little different after the moving company has taken a look at what you have.
Most people book some time off work - a day and up to a week is the norm - to get the move done and get everything unpacked. Leading up to the day of the move, it's possible you'll take a day here and there to do the packing.
If you have vacation time, you can use it so you still get your regular paycheque. Just remember you’re depleting your vacation balance when you do this. Those who don’t have vacation benefits will need to plan more carefully for any lost wages.
If you're buying a brand-new home you won't need to worry about this - new homes are built to the highest standards with modern materials, and in the rare event that there is a minor defect they'll be covered by the Alberta New Home Warranty. However, if you're buying a resale home it's a good idea to put a little money aside for repairs, especially for an older home.
This is something that's especially relevant to renters who are moving up to owning their first home!
In a rental, some bills and utilities may be included in the rent or taken care of by the landlord. Once you own your own home you'll be responsible for everything, so be sure to plan accordingly.
Averages for these vary as it depends on the size of your home but we do have a rough estimate for you:
Keeping an emergency fund is a good idea no matter what, and it's especially relevant once you're completely responsible for all the bills. You never know when an unexpected career change or large expense might come along, so it's always best to keep some money aside for a rainy day.
Experts recommend to try and budget enough money to cover your expenses for at three months on the low end and up to six months on the high side.
Most people already have the basics when it comes to furniture and decor and as such, they don't think about adding this to their budget. However, once you get inside your new home, you may find little things that you'd like to change.
Perhaps your new master bedroom has a lot more space than your old one, and you'd like to add a recliner or chaise with a nice lamp for reading. Maybe your new kids' playroom needs some more storage options.
You’re probably going to find yourself thinking about how you’d like your new place even more if you had some new pieces to go with it! Sure, you can pick up these things over time, one piece at a time. But. if you plan ahead and include it in your moving budget, you can go on a shopping spree as soon as you move in!
If you're buying a new home it's worth speaking to your homebuilder about furniture options as well - at Prominent, for example, we offer interior design packages for furniture consultations and discounts on certain furniture stores we've partnered with, which is a great way to save if you're thinking of redecorating.
At Prominent Homes, we can help you find a home you love that fits your budget, with room to spare for the costs mentioned above. Talk to us today and see what kind of homes can be a great fit for you.