What Are Monthly Carrying Costs?

Part of the joy of ownership is the responsibility of being able to carry the cost of the most significant purchase of your life. Otherwise known as “The Gift That Keeps On Giving” these are the month to month costs that keep the roof over not only your head but your nearest and dearest as well.

Some of the payments are fixed but, crucially, others tend to increase annually. Municipal taxes are such an example where the city aligns your annual assessment with the rise of cost of provision and the increase in value of your property. The MLS listing information must have accurate taxes posted. We have personally seen firm deals annulled due to out of date or incorrect taxes posted. Condominium apartment maintenance fees are in the same bracket and the Status Certificate or financial health of the reserve fund must be deemed to be accurate by your lawyer prior to closing. There is absolutely nothing worse than purchasing a unit in good faith only to find yourself slapped with a notice to increase fees shortly after moving in. Toronto is awash with law suits from consumers around this topic.

Residential homes are meant to be lived in. That means they are meant to be heated and cooled seasonally, the lights go on and off and the troughs and downspouts are leak free with a well maintained roof. This all costs money. Apart from the comfort of living in a home in good working order these things are vital to preserve the long term viability and return on investment of your purchase. It is common for the hot water tank to be rented for example.

Mortgages come with their own built in costs. CMHC Mortgage Insurance is a mandatory expense depending on the size of your down payment. As we’ve seen recently these costs change according to government policy.

We’ve helped dozens and dozens of great clients figure out these ins and outs. Mostly it’s the cost of living in the city which we all have to bear. Home ownership is not a free ride however. If the budget is in place, the understand that costs are not fixed and will rise is observed, the provision of emergency funds for a rainy day are at hand you will be fine. The benefits of responsible home ownership far outweigh the immediate monthly carrying costs.

Call or email us with any further questions or if you need advice.