whats_happening_with_your_billIn first part of this 3 part series, I touched on a few items that some first time home buyers may not have planned for such as Legal Fees, Land Transfer Taxes, Appraisals, as well as HST on new homes and on CMHC Premiums.

Something I did not touch on, and will this week, is the costs of setting up basic accounts like your Gas, Hydro, Oil, Water, and Home Owners Insurance.  For many first time buyers moving from a rental means setting up new utility accounts, and with new accounts come Set-Up Fees, as well as deposit, an example of this would be setting up a new Hydro account, there is a mandatory set up fee ranging from $35-50 and some companies will require a deposit on new accounts, these deposits can range anywhere from $100-300.  Now if you look at these set-up fees so each of your utility accounts (Gas, Hydro, Water) as well as deposits (100-300 x 3) you could be looking at close to $1000 in unplanned costs within the first 30 days of closing.  It is very important to ensure that you get detailed information with regards to all service providers and speak to each company well in advance to get an estimated cost for a new account as well as try to negotiate the deposits should they be required.

Some homes (especially in rural areas) maybe heated by Oil or Propane, and these fuel types will require monthly, bi monthly, or quarterly fill ups.  It is very important for any purchaser to include a clause in their agreement of purchase and sale that clearly states sellers will provide the tank at full on the day of closing and that the receipt is supplied to show the amount paid and the amount of fuel supplied.  This will allow you a few months to settle in before having to spend on fuel, and will give you an estimated cost for your fuel so that you can budget accordingly.