Can You Afford a Property in Linden Woods?

Buying a home is one of the biggest purchases that most Canadians will make in their lifetime. Before you make the choice to buy, it is critical that you understand the cost that comes with homeownership—aside from the initial purchase price. From general maintenance to property taxes, there’s a lot to consider beyond the down payment/monthly mortgage costs. To help you determine if you’re ready to make an offer on a property in Linden Woods, we’ve compiled a list of expenses that you should include in your budget for owning a home. Follow along below to learn more about the cost of homeownership in Winnipeg!

One-Time Costs Associated With Buying

To get a better understanding of the full cost of buying a home, we split this article into two sections: the one-time costs (i.e. closing costs) and the monthly costs (i.e. taxes, maintenance, etc). 

When you buy a home, there are a variety of expenses that need to be paid during the closing of the deal. These costs are generally referred to as closing costs. A common one to pay is an appraisal fee. This is not always necessary, but sometimes your lender may require an independent appraisal to determine the property’s worth. Furthermore, you’ll need to account for home inspection fees. While some buyers choose to skip out on the home inspection, we don’t recommend it. Especially, if you’re buying an older home. A home inspection can save you from investing in a property with hidden defects. 

Buyers should also note that in some neighbourhoods it is required that you pay a one-time land transfer tax. This occurs when you take ownership of the property and the cost is usually determined by the home’s purchase price. You can ask your REALTOR® for more information about this expense. During the closing process, you often require the help of a lawyer or notary. As such, it is important to incorporate this cost into your home-buying budget. You may also consider factoring in title insurance, moving expenses and utility set-up costs.

Moreover, for those with a down payment of less than 20%, the CMHC (Canada Mortgage and Housing Corporation) requires that you purchase default loan insurance. This protects your lender in the event that you are unable to make your mortgage payments. Your loan insurance can be tacked on to your monthly mortgage bills or paid in full, up-front. 

Monthly Housing Costs That Come With a Property in Linden Woods

After settling into your new residence, it’s necessary to begin covering the monthly expenses associated with homeownership. The most obvious cost is likely your mortgage payment. Second to this would be property taxes. Property taxes paid by homeowners go toward the municipality. They are then used to pay for basic infrastructure and services like street lighting, garbage removal, snow removal, fire protection, and more. Every city has a tax rate that is determined by the local government. In February of 2024, Winnipeg announced that it would hold its property tax rate at 3.5%. This marked an increase of roughly $69 total for the average homeowner. 

Other monthly costs include utilities and the Internet. Your utility expenses will cover items such as power, water, sewage and heating. The price you’ll pay for these will typically vary from month to month, season to season, and the age of your house. You can get an estimate of your average monthly utility bill from your REALTOR® to help you get a better sense of your monthly expenses. Additionally, if you use the Internet or cable, you’ll need to pay these expenses in your new home. Most Canadians pay between $95 and $150 per month for Internet access and basic cable. 

Finally, you’ll need to factor in the costs of maintenance and home insurance. It is appropriate to budget roughly 3-5% of your home’s value per year on maintenance. The newer your home is, the less you’ll spend on maintenance and vice versa. As for home insurance, the cost will vary depending on your exact location, the replacement cost of your home, and how the house was built. If you want to learn more about selecting the right home insurance, talk with your REALTOR® today!

Contact us About a Property in Linden Woods!

If you’re planning on buying a property in Linden Woods this spring, it’s important to determine your budget!  As your agents, we are committed to providing you with the best services possible. If you have any other questions about the expenses that come with buying a home, contact us today! We’d be happy to help support you through your real estate journey. Please feel free to reach out with any additional questions or concerns. Be sure to check out our social media for the latest updates and more. We look forward to working with you in the near future!