5.4 Total costs of a mortgage

In this section:

• 5.4.1 Case study: Costs of buying a home
• 5.4.2 Planning your purchase
• 5.4.3 Protecting your mortgage
• 5.4.4 Questions to ask about mortgages
• 5.4.5 Summary of key messages

Introduction

When you're planning to buy a home, don't forget that there's more to it than just the purchase price. Not only are there the many costs associated with buying, financing and transferring a home, but there are also the costs of setting up a new residence and the ongoing costs of running a household. To be able to enjoy your home, you have to be able to manage the total costs comfortably. This module will help you plan for the total costs of a new home and mortgage.

You will explore:

• the costs of buying and maintaining a home in addition to the costs of a mortgage
• how to protect your finances with mortgage insurance
• what you need to think about before buying a home and taking on a mortgage.

You'll use a worksheet to plan for the full costs of buying a new home with a mortgage loan. You'll answer the questions you need to ask yourself before taking on a mortgage, and the questions to ask a mortgage lender. By the time you finish this section, you'll be able to plan for the costs of a mortgage and choose one that best suits your needs.