I'm Approved? What Else?

Utilities

Utilities are those essential services provided to the public, used to sustain accepted living standards in our home environment. The companies providing these services are typically regulated by the government. The services vary depending on the style of home, but are usually as follows:

- Heating (by natural gas/boiler/electric baseboard heater)

- Electricity (by Toronto Hydro, Veridian or relevant co.)

The municipality or regulatory body ensures that all homes are equipped to provide essential home services before issuing license, authorization and/or applicable permits for building, sale or occupation. The solicitor (lawyer) for each realty purchase and/or mortgage transaction is responsible for writing to inform the essential service companies of a change in ownership and billing. Ask your realtor and/or the municipality for an approximate value for these fees and touch base with your lawyer to ensure that the transfers have been made.

Taxes & Insurances

Property taxes are those fees payable to the city or municipalities. Typically an annual fee, property taxes are allocated by the city to provide essential metropolis services (roads, education, environment, waste, transportation, seniors, childcare, tourism, planning, highway, recycling, etc.)

Municipal taxes represent the first obligation/indebtedness of a property or an estate. In the event of an inheritance or default in payment, the property taxes are satisfied first, followed closely by the beneficiary or mortgagee (bank or financial institution) as appropriate. First-time homebuyers and those mortgagors with less then 10 per cent personal investment/down payment will find that banks will opt to collect and pay the property taxes alongside the mortgage on behalf of the client, to ensure their investment in the property.

Fire insurance ensures that in the event of a property related peril (fire damage, most weather damage, explosion, sewage back up and related property risks), the mortgagee and/or mortgagor's investment is covered. In the case of a mortgagee (bank, credit union, private lender) proof of this type of insurance, with the mortgagee listed as loss payee, is usually mandatory before proceeds (monies) from a mortgage or loan are advanced. Fire insurance will also compensate the mortgagor (homeowner) for loss, theft or damage of personal or other belongings on the property.

Maintenance  

Homes vary in size, shape and style, but most have very common needs.  To ensure a clean and healthy, interior environment, it is advisable to have your heating and cooling system checked before the start of the season (once in late Fall and again in the Spring). Similarly, have your roof(s) inspected and your gutters, eaves trough and chimney cleaned once a year. Inspect, remove and recaulk your windows bi-annually or as appropriate.

A pro-active approach to homeownership will see the homeowner developing a basic checklist of issues and concerns to address periodically throughout the year. Staying on top of these concerns eliminates surprises and makes your homeownership experience that much more enjoyable.