More to Homebuying
Finding and purchasing your home can be an exciting and overwhelming
process. You may be relieved once you finally take possession
of your new house but be aware that the financial responsibilities
of homeownership are just beginning.
Make Your Mortgage Payments on Time
Whether monthly, biweekly or weekly, be sure that you always
make your mortgage payments on time. Making late payments
(delinquency) may result in late charges
and negatively affect your credit rating. Failing to make
payments can even lead to more serious consequences like foreclosure.
A good way to prevent late payments is to have the amount
automatically deducted from your account every month and to
put at least three months' worth of mortgage payments in savings
for emergency situations. If you are having trouble making
payments, discuss the situation with your lender.
Costs of Operating a Home
Besides your mortgage, property taxes and insurance, there
are many other ongoing costs related to operating your home.
They include maintenance and repair, costs for services such
as security alarm services, snow removal services and gardening
services (if you wish to pay for these). If you have a condominium
or strata, some of these expenses may be included as part
of your monthly maintenance fee.
Saving for Emergencies
Even if you know how to do repairs yourself, there are costs
involved. Every building has a life cycle, which means that
all parts of a building age and require major repairs or replacement
at some point. For example, you might know that your roof
will have to be replaced in a few years simply because of
its age. Repairs like these are expected and can be planned
for. However, many repairs are unexpected and can sometimes
be costly.
Set aside an emergency fund to deal with unexpected problems
ranging from major repairs to illness and job loss. A good
guideline is saving 5% of your take-home pay and putting it
in a special account.
Living Within Your Budget
Prepare a monthly budget and stick to it. You should monitor
your spending every month and evaluate your progress in meeting
your financial goals. If you continue to spend more than you
are bringing in, you must find ways to cut back. If you are
having trouble sticking to your budget, don't hesitate to
ask a professional money manager for help.
Ottawa Home Buyers Guide
Ottawa Living is Ottawa's premier online
resource for everything about your home. We provide comprehensive
Ottawa real estate and rental listings, for home buyers, home
owners, and renters. We also have a comprehensive home services
directory for your home shopping and renovation needs. Our
Ottawa home directory consists of the following categories:
apartment
rentals, financing,
home
& garden, home
renovation, home
services, insurance,
lawyers,
moving
& relocation, and real
estate services.
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