Buying a home can be a massive task, but it doesn’t have to be stressful. In this article, we take a look at some of the most common mistakes that homebuyers make so they don’t end up wasting their hard-earned cash.

There are a lot of people who want to find the best way to build their residence, but they don’t really know where to start. This article takes a look at some of the best bills for a home you should not forget. For this article, we’ll be focusing on the first bill, which is a home loan.

While most of us are so focused on getting the right house that we don’t think about the bills that we’ll have to pay once we move in, it is important to do a little research on the cost of living in the area before you buy a house. It is estimated that the average American household spent $132,000 in 2017 on housing, but that number doesn’t include all the other expenses. The average American household spent $8,000 on taxes, $10,500 on food, $8,000 on clothing, $2,400 on transportation, and $2,000 on medical costs. If you don’t have to pay for those things now, you may well have to later

Congratulations on becoming a homeowner or preparing to become one! To prepare, it is helpful to become familiar with the general bills that are in front of you. These hidden costs of buying a home can ruin your budget if you are not aware of them. After purchasing a new home, some of these expenses may come unexpectedly at any time. That’s why it’s a good idea to set aside some money in the beginning, after the down payment and closing costs. Here are some of the annual and monthly expenses you can expect in your new home:   word-image-17146 word-image-17147

List of owner’s costs

1. Mortgage

I know you are already aware of the new home loan, but we are adding that first to complete the list. If you are unable to pay the full amount out of pocket, these monthly payments are usually spread over a 30 or 15 year loan. The amount due consists of the principal and interest payments. The principal is the amount borrowed and the interest is the amount the lender charges for using the money. TIP: By paying extra money each month to repay it, you reduce the amount of interest you pay and shorten the repayment period of your loan. But, don’t forget to indicate what you plan to spend these extra payments on!

2. Property tax

Depending on where you live, property taxes can range from 0.3% to 2.5% of the assessed value of your home each year. This is an ad valorem tax that can increase or decrease each year when your home is revalued.

3. Private Mortgage Insurance (PMI)

PMI is usually required by your lender when you make a down payment of less than 20% of the purchase price of a home. It protects the lender’s investment if you fail to repay the loan. The PMI can range from 0.5% to 2% of the mortgage amount or more. NOTE: If you qualify for a VA home loan, no down payment is required and there is no PMI.

4. Home contents insurance

It’s usually required for the purchase of a home and protects your investment (and your lender) from theft, damage, fire, etc.

5. Flood insurance

Most homeowners insurance policies do not cover flood damage. If you live in a flood zone, your lender may require additional flood insurance. It can also be a wise investment in the event of a natural disaster.

6. House guarantee

One of the disadvantages of owning your own home is that you can no longer call your landlord and threaten him with eviction if something breaks! Now it’s up to you. A home warranty can cover most systems (HVAC, heating, plumbing) and appliances in your home. If something happens, it can be very expensive to repair (or replace). It is also helpful to have a fund for unexpected expenses. Typical price: $400 – $700 per year NOTE: You can negotiate and ask the seller to pay for the first year.

7. Safety at home

Feeling safe at home is very important and I recommend everyone to have a security system. You can buy a home security system for a monthly fee or create your own home security system.

8. Costs of Homeowners Association (VvE)

If you live in an HOA community, you must pay these common maintenance fees, and they may also cover some utilities. These fees vary significantly from region to region and can range from $50 to thousands of dollars.

9. Utilities

If you live in a rental property, utilities are already factored in; however, in a home, utilities can be more expensive due to the extra space. Typical utilities are :

  • Electricity
  • Gas
  • Water
  • Wastebasket/Sanitary
  • Cable, internet and telephone : In addition to the monthly fee, your household may face initial installation costs for the connection.

10. Regular maintenance

As a homeowner, you also have to pay for the maintenance of your home. This includes things like:

  • Lawn and garden maintenance
  • HVAC maintenance and filter replacement
  • Pest control (see my money-saving pest control guide!)
  • Changing the lamps and batteries in the alarm


Owning your own home is a wonderful experience, but it can become an overwhelming burden if you are not prepared for the costs involved. Also, consider some of these costs before deciding on the purchase price of a home. You may need to adjust your budget or buy a smaller house. Here’s another monthly spending list that includes all your living expenses for budgeting purposes.You’ve done your research to find a mortgage that fits your family’s budget. You’ve chosen a home that you’ll love for years to come and promise to repay the mortgage with interest. But there’s one thing you may overlook: the many costs that come with owning a home.. Read more about list of household expenses template and let us know what you think.

Frequently Asked Questions

What are monthly bills for a house?

Most homeowners pay their monthly bills at the end of each month. You have those bills that you are pretty certain you won’t forget to pay, but the others are going to be tricky. The good news is that you don’t have to pay every bill every month. You can create a plan to pay your bills on a monthly basis, and this could save you money and hassle. The monthly cost of a house can be a terrifying number to consider, especially if you’re still renting. This article will reveal what your housing costs should look like if you buy a house.

What bills do you pay for a house?

It is important to know the average amount of each of your payments when seeking a house. This can help you find a house with a lower monthly payment, a bigger down payment, or a combination of both. At the same time, not paying your bills on time may cause you many headaches. Bills are not the only debt you may need to have an eye on: the average homeowner also has credit card debt, student loans and car loans. There are a number of financial elements involved with buying a home. However, there’s one expense you may not be considering, and that’s the mortgage. There are dozens of different types of mortgages to choose from, each with its own unique features. So, if you’re new to the home-buying process, here are 10 important bills you’ll need to pay for a home you shouldn’t forget.

What are considered monthly expenses?

In this blog entry, I’ll be listing down 10 of the most common monthly expenses for a home that Canadian home buyers usually want. Hopefully, this will help you save a few bucks and maybe even some of your monthly budget. Last year, I was living in an apartment in NYC. The rent was $3000 (monthly). I was working on a part-time, low-paying job. I made minimum wage ($7.25 per hour). I was making $120,000 in gross income. I had a car loan. My student loan was about to go into default. My credit card was about to go into default. I had $4000 left to my name.

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