Assessing the Cost of Homeownership in Montreal
As a homeowner, there are various costs that you can expect to pay each month, such as your mortgage fees, utility bills, and taxes. Having an idea of your carrying costs is important for when it comes to budgeting. Here are some monthly homeownership costs that you will have to pay each month when living in Montreal and other regions of Quebec.
There are two principals that make up a mortgage payment. These are the loan that you are paying back monthly and the interest on the loan. The amount that you pay each month will be determined by your interest rate, the duration of your mortgage, the amount of your down payment and how frequently you make the payments. Using a mortgage calculator can help you figure out how much you are expected to pay each month.
There are two types of property taxes that you should be aware of when living in Quebec. These are school taxes and municipal taxes. Property taxes are in place to cover public expenses that relate to your property. These include snow removal, recycling collection, garbage removal, fire services, policing and street lighting. Property taxes are made by each municipality and can change on a year to year basis. Property taxes usually range between 0.5% and 2.5% of your property’s market value.
Condo fees are monthly mandatory fees that are paid to your condo association. These fees help to cover the maintenance of the building, the insurance and its amenities. However, condo fees can vary from project to project with the average amount being $193 per calendar month in Montreal. Bear in mind that your condo fees will be higher if your project includes a pool, gym or concierge service.
Utilities and Bills
Your utility costs are usually made up from your usage of water, internet, electricity, and heating costs. The cost of your utilities will vary from property to property based on the season, the type of heating system you have installed, and square footage. If you own a rental home, some of these costs may already be covered because of your rental agreement.
Home insurance is incredibly important for your home, as it will protect you against any incidental damage such as theft, vandalism, and flooding. If your down payment amounts to 20% or less of the property’s value, you will also need to take out mortgage insurance to protect you against potential defaults on your loan repayment. You can expect to pay $50 per calendar month for home insurance in Montreal. Make sure that you look online at different companies, as home insurance costs can be reduced by comparing quotes, which can end up saving you money in the long run.
When establishing how much you are likely to pay each month for your home, it’s important to factor in things like mortgage payments, property taxes, and home insurance, so you can get a better idea of homeownership in Montreal and whether it is affordable for you.