The cost of owning a home is more than just the purchase price and mortgage payments. See below for a full list of the monthly costs you can expect to pay owning a condo or townhome here in BC.
Strata Fees
Strata fees are a monthly fee paid to the building’s Strata Corporation to pay for common expenses within the development or building. Some common expenses include the building’s insurance, management fees, waste collection, maintenance of landscape, and administrative costs. Each owner pays a specific figure, which is determined by the strata corporation’s total expenses divided by the unit entitlement. Simply put, homes with a larger footprint/square footage are more expensive. Strata fees can vary depending on the building’s location and if it has amenities such as a pool, hot tub or other water features, these buildings tend to be more expensive. The range tends to go between $0.45 to $0.60 per foot.
Mortgage Payments
Your mortgage is usually the price of your purchase price minus your down payment, plus insurance (if your down payment is less than 20%), and interest. You will pay this back over time. As a general rule of thumb, every $100k of your mortgage will cost you around approximately $400 per month.
Getting a pre-approval on your mortgage is a great way to start your buying process because it enables you to move quickly when you find a place you want to make an offer on and it allows you to know how much you have to work with and don’t go over budget when looking for places. How this process works is that a lender or mortgage broker looks over your finances and calculates the maximum amount they can lend you and the interest rate they’ll charge. They lock in that approval amount for up to 120 days so that you have time to search without worrying about the rates changing.
Home Insurance
Home insurance is used to protect your investment from any damage from earthquakes, fire, and more. Though not mandatory in BC, your mortgage lender may require it. Insurance companies consider different factors to determine your home insurance rate. The rate varies depending on how much coverage you require, where your home is located, and your claims history. For strata, insurance costs approximately $100 per month/$1,000 annually.
Property Taxes
There are two main factors that go into the amount you have to pay each year in property taxes. The first is your home’s assessed value of your land and any buildings or structures in the property. The money raised from property taxes are used to fund local programs and services such as parks, schools, libraries, and hospitals. See diagram below.
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