When you have bought your home, the real challenge starts now. And that is “Your Financial Responsibility”
Make Your Mortgage Payments on Time
You can decide how you want to make your mortgage payments- monthly, biweekly or weekly. But always make sure you make your payments on time. Making late payments is called delinquency which may negatively affect your credit rating. Failing to make payments can even lead to very serious consequences, like foreclosure of your property.
To avoid any late payments, you can choose to get the amount automatically deducted from your account every month. It’s also a good idea to keep reserve funds for three months towards your mortgage payments in emergency situations.
Plan for the Costs of Operating a Home
Operating a home has many other ongoing costs other than mortgage, property tax etc. A home needs regular maintenance and repair costs. There can be other costs as well like example a security alarm system, snow removal, or gardening (if you opt for these services). If you live in a condo, then you have an extra maintenance cost to live with.
Save for Emergencies
Always save for emergencies. There are some expected and some unexpected expenses involved in home maintenance. Example, when you bought the house, you were aware of certain expenses that have to be done. But there can be some which come up suddenly. Therefore, always set aside an emergency fund to deal with unexpected problems so that they don’t weigh heavy on your pocket when in times of crises.
Live Within Your Budget
Prepare a monthly budget and stick to it. Take a few minutes every month to check your spending and see if you are meeting your financial goals. If you spend more than you earn, you must find new ways to save. If you are having trouble sticking to your budget, ask a professional money manager for help.
If you haven’t already reviewed your budget, now is the perfect time. Use the helpful CMHC worksheet Household Budget as Homeowner.
Home Maintenance
Maintenance, repair, and renovations are a normal part of homeownership. You will need to know about your home’s basic components, and know the actions you will need to take to adjust these systems or turn them off in case of emergency.
You’ll need to inspect your home regularly, and replace, or repair, parts and materials that wear out. And of course, since Canadian seasons can be so extreme, you’ll need to do many maintenance tasks on a seasonal basis.
Is your Home Safe?
Fire Evacuation Plan
Do you have a fire evacuation plan? A plan means that you make sure everyone in your home knows how to get out from each room, in case of a fire. If your home has a second floor, you need a special escape plan to get to the ground. Check to see that windows have not been painted shut. Although doors and windows should always be securely locked, you have to be able to open them in an emergency.
Fire Extinguishers
Fire extinguishers must always be easy to reach. If you have a two storey home, there should be a fire extinguisher on each floor. Remember to check your fire extinguishers at least once a year. To help you remember, make a habit of doing it when you set your clocks to Daylight Saving Time. Replace a fire extinguisher that is 10 years or older.
Smoke Alarms
In some areas, it is a legal requirement to have smoke alarms in your home. Whether or not it is a legal requirement, having smoke alarms is an excellent precaution. Check smoke alarm batteries at least once a year.
Carbon Monoxide Detectors
Carbon monoxide is an invisible, odourless, poisonous gas. Carbon monoxide detectors are important to have. They will let you know if there are high levels of carbon monoxide in your home. This can save you from illness, or even death. Check them at least once a year. Make a habit of checking your fire extinguishers, smoke and carbon monoxide detectors all at the same time.
Fire Hazards
Paper, paint, chemicals and other clutter can be a fire hazard. Make sure these are stored in a safe place. When you no longer need the hazardous materials, you must dispose of them at a community toxic waste center. Never put hazardous materials into the garbage.
Valuables
Collect your papers and store them in a safe place — for example, a fireproof box, or a safety deposit box.
Emergency Numbers
Keep a list of emergency phone numbers (including 911, poison prevention line, doctors, relatives, neighbors and friends) close to the phone. Make sure your children are aware of the list.
Home Improvements
Besides doing regular maintenance and repairing your home, you might also want to consider renovating or making improvements. These changes will not only make the home more pleasant for you to live in, they may also increase its value.
How Much is Just Right?
When planning renovations, be careful not to go overboard unless you plan to stay in your home for many years. If you are planning to sell your house, make sure that your changes won’t make your home worth a lot more than the other homes around you. The value of your home is closely related to the other homes in your area.
Over time, some renovations can practically pay for themselves, especially if they result in savings on utility bills, a higher selling price or years of greater comfort and enjoyment in your home.
Some Things to Keep in Mind
Here are some things to keep in mind when planning a change or renovation:
- Ask yourself, “How appealing will this change be to someone buying my home in the future?” You can make very personalized changes with paint. Paint is inexpensive and can easily be changed. But, flooring, cabinets and countertops have a longer life — make choices that will also appeal to others.
- Think about getting your home energy-rated. This will tell you how energy efficient your home is and what improvements are possible. Visit Natural Resources Canada at www.oee.nrcan.gc.ca to find information on current energy programs.
- Updating the bathrooms and kitchen in an older home can increase its resale value.
- Landscaping is important. The right planting can improve the appearance and value of your home.
- Updating your exterior paint, installing new roofing, resurfacing your walkways and driveway, and adding attractive mailboxes can help make your home more appealing.