To move house? How to budget for a whole new life – MoneySense

Your first concern is completing your obligations in your current city or town. “I think a lot of people are taken by surprise when it comes to terminating their mortgage,” Hexter says. “They are two or three years old [into a mortgage term] and didn’t realize that, and sometimes it can be a $10,000 to $15,000 fine. If you are starting from scratch, we will look at what it will cost you to end your current arrangements. Are you mid-lease? Do you have a medium mortgage? And what are the consequences of that?”

Be aware of hidden moving costs and timing differences

As for the move, if your move-in and move-in days don’t line up very well, Hexter noted that unexpected costs could include temporary storage of your belongings, and hotel or Airbnb costs if you need to stay somewhere. Ask your real estate agent about recommended moving companies, he added. Their referral may even result in a discount.

Otherwise, be wary of the cheapest moving quote; it could be a scam. Contact the Canadian Association of Movers, which has compiled sources and cases of common moving fraud, which often start with very low quotes.

If you’re moving a significant distance, it may not be worth it to take all your furniture with you, says Brandon Wiebe, a fee-only financial planner with Saskatoon-based Money Helps. One expense you should consider in advance is buying new furniture when you land. There’s also the cost of the journey to get there, whether it’s a plane ticket or the cost of gas if you drive.

Test the lifestyle before committing to a home

Another landing cost that’s difficult to track in a spreadsheet: your support system.

“One of the bigger things to consider is how your support system might change if your friends and family aren’t accessible,” says Wiebe. “That could mean you don’t actually have anyone to help you move. Maybe you were thinking about renovating something that a certain family member could help you with, but you can’t do it alone. Or, really, a big one is if you have kids and maybe parents help with childcare.”

If you’re lucky enough to have the option, Wiebe recommends a more cautious approach to moving: “try it before you buy it.” Rent in the city first, don’t buy right away. If the lifestyle isn’t a good fit, reselling a home within a few years is costly in terms of recouping real estate agent and closing costs, he said.

Wiebe had clients who spent time babysitting in Montreal to get a feel for the city. “They ended up buying and were very happy,” he said.

A bigger city does not always mean higher costs

Your expected budget in a new, bigger city doesn’t always have to assume it will be more expensive in every respect.

Rural properties, for example, have their own unique costs, Hexter noted: everything from septic tanks to snow removal from a very long driveway. Property maintenance can be pricey. Property tax rates can also vary widely across the country.

Some cities allow you to live car-free if they are walkable and have a strong public transportation system.

“I think people in Saskatoon assume everything is just going to get more expensive [in another city]“You know, there may be areas like public transportation or even the cost of heating your home in the winter where you can actually save money in another city.”

Budget smarter with research and expert advice

When it comes to local costs of living, everything from groceries to gasoline, you can do research online to understand how expensive your lifestyle may be in a new location.

Hexter recommends ChatGPT for summarizing reliable sources and cost calculations. You can put a credit card statement into an AI tool and ask it to project the cost of your lifestyle in another city. Or you can do it yourself: look at your expenses and research the costs where you plan to land.

You may also want to consult with your real estate agent, especially if they have experience moving clients. “Lean on your professionals,” Hexter said. “If you’re working with a real estate agent, talk to them about moving costs. Real estate agents who have experience moving have the professional partners who can help you and get you asking the right questions, and perhaps also uncover any blind spots.”

Read more about real estate: