Cost of Buying a Home in Grande Prairie? Any hidden fees?
This week I will talk about the cost of buying a home in Grande Prairie.
Although I bought my home back in 2015, I’m lucky enough to work with new mortgages and purchase’s everyday here in Grande Prairie, so this will be as detailed as I can give you. Here’s a breakdown of what I spent.
I’ve signed the purchase agreement for my new home here in Grande Prairie. My mortgage broker has verified that I have enough downpayment but….
“What other cost’s should I expect when buying my home?
First I’ve called a lawyer for a quotes.
“Could I get a quote for legal fee’s on this $250,000 house I’m purchasing here in Grande Prairie?”
I would expect legal fee’s for a home purchase to run around 0.5% of the purchase price. So $250,000 home x 0.05% = $1250. A $500,000 home will have a cost around $2500. This will vary between lawyers so call for quotes!
My lawyer will help me purchase title insurance, $160 for a $250,000 home in Grande Prairie, and roughly $300 for a $500,000 home.
Next I’ve called a home & auto insurance company for a home insurance quote. If I’m lucky my new insurance company won’t make me do too much legwork. I’m prepared to answer questions like:
” How old is the roof of your new home? How old is the hot water heater? Is the basement carpeted or tiled?”
My current home insurance policy costs me $120 every month. You are required to have home insurance to get a mortgage. So expect to pay between $120 to $220 a month on homes priced between $250,000 to $500,000.
Another insurance to get is for your personal protection- life & disability insurance. For me on a $250,000 home Life Insurance was $17 a month, and disability was $37 a month. These rates will change based on your health and age. I was 25 and darn healthy.
- Mortgage Default Insurance: if you put less than 20% down on your house, you are getting default insurance. You don’t have to worry about saving up, as every mortgage company in Canada just adds it to your mortgage. The cost varies based on your downpayment vs purchase price. Check out this CMHC calculator to estimate it based on your next home purchase. ( 5% down on a $250,000 home – $11,400 for default insurance.)
- If you avoid mortgage default insurance you may pay $200-$400 for an appraisal. (You also may need an appraisal if there’s something strange about your new home. Wood Foundation? Used to be a church?)
- Watch this video to learn more about default insurance
This was an expense I never expected for my first home. You move into your lovely new house and then slowly realize…. I need a broom, kitchen scrubs, rakes, shovels! you need dish towels, disk racks, spoons, tea kettle, spices…. It adds up.
If you can try to negotiate for “Backyard Shed including contents” to avoid having to buy yard supplies. I’ve never seen a purchase agreement negotiate for the cleaning supplies closet to be left fully stocked, but I would have saved so much.
As well,Budget another $500 to stock your house up with all the cleaning supplies, brooms, mops, linens, pot and more that a house requires. You could of course spend way more than this…. Try to hold off purchasing the diamond crusted broom till month two.
Furnishing your New Home
This… you can spend so much on furniture so quickly! The most subjective cost out of all the categories. My best advice is take it slow. Enjoy the freedom of having no furniture. Being minimalist is very chic for 2019. Budget $500 for the first two months and see how far you can stretch it.
Don’t go out and buy all new furniture with a monthly payment plan. Wait a year.
Start calling at least two weeks in advance before your move-in date to get your services set-up.
Heat & Electric on a combined bill: $228/month
Water & Garbage Removal: $80/month
Start planning for the future. Now that you own your home, 10 years down the road you’ll need a new roof/fridge/hot water boiler/ new deck. Try to put aside $1000 a year to cover future repairs. One day you will need to replace the roof/ repaint the deck/ buy a new furnace / update the windows. Plan and set the money aside in advance, future you will be happy.
The Total Cost of Buying a Home in Grande Prairie
Cost of Getting a Mortgage on a $250,000 home in Grande Prairie with 5% down (Rough Numbers)
Default Insurance: $11,400 – added to your mortgage
Title Insurance: $160 -Part of your legal cost’s
Appraisal $200-$400 – not always required for a purchase.
Household Goods $500
To Furnish your home – $500 & be strategic for the first two months.
Monthly Add-on’s to the budget
- Internet $90
- Cable TV $90 (Netflix $13)
- Heat & Electric on a combined bill $228
- Water & Garbage $80
- Home Insurance $120
- Home Maintenance $84 (Save $1000 a year to start)
Getting a home is a big investment, and a major change to how you’ll budget and spend your money. For myself having a place of my own to decorate and host at was always worthwhile.
If this is starting to seem like too big of expense – We live here in Grande Prairie! Our rental market is thriving, and people are always looking for a room to rent. Rent a spare room out and net $600 a month. I’m renting two rooms for $700 a month right now in my house.
PS: please send me an email or message me on Facebook if you’d disagree with these numbers for a $250,000 home in Grande Prairie. Or if you think I’ve missed any of the cost’s associated with owning a home!