Buying a home?
We have everything you need to know about the home buying process in our complete guide to buying a home in Alberta.
By ATB Financial 30 October 2020 3 min read
Buying a home is an exciting time. For most of us, we buy based on our emotions, how well it meets our needs, and whether or not we can squeeze it into our budget. Of course a home has to feel good and work for your lifestyle, but squeezing it into your budget is not usually the best plan. Or, at the very least, if you’re going to squeeze it in, make sure you’ve considered all of the expenses involved in buying a house up front. If you’re only working with the purchase price, your budget may burst at the seams.
So, if you’re buying a new home for $400,000 with a mortgage of 5% down ($20,000), you’ll have another $11,970* added for mortgage insurance. Your total mortgage will be $391,970. Then you’ll also need to budget approximately $8,000 for additional costs. And you haven’t even started to decorate.
We have everything you need to know about the home buying process in our complete guide to buying a home in Alberta.
Many of the higher costs can be rolled into your mortgage, but keep this in mind when you decide how much of a mortgage you can afford. Your lender will be able to guide you through this process. Understanding the real costs of buying a house will help you find the home that’s just right for you—one that you love, and can afford.
*Based on a 25-year amortization.
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