Owning a condo for the first time is exciting, as you’ll finally get a place you can say is yours. While it’s fun to imagine how your life will be in your new home, being a homeowner can come with quite a financial burden (although
Created a detailed budget
First-time condo owners should prioritize creating a thorough budget. The most essential items will be your hard costs, such as your mortgage, hydro, maintenance, fees and insurance.
Once you’ve established your living costs, you’ll also want to include any additional monthly expenses such as internet, transit, entertainment, and groceries. You’ll obviously want to ensure that you’re spending less than you make, but you should also try to save some money.
Keep in mind that your expenses may change from month to month as a new homeowner. No one expects you to have your budget perfected immediately, so make adjustments as needed.
Use energy-efficent items when possible
While it may not always be possible, try to use energy-efficient items when you can. Major things such as appliances likely won’t need replacing anytime soon, but if you do need to get new ones, make sure they’re
Consider switching your lightbulbs to LEDs, using timed power bars, or even switching to low-flow faucets. Additionally, read your thermostat’s manual and see if you can program it to be more efficient. These changes can help lower your utility bills, and it’s good for the environment as well.
Consider DIY improvements
Condo owners can save money by tackling DIY home improvement projects. Painting walls by yourself is an easy way to give your home a new look at a minimal cost. You could even consider painting your cabinets or adding wallpaper for a fresh look.
Other minor home improvements that can be done on your own include switching door knobs and cabinet handles, using a stick-on backsplash, and adding a DIY closet organizer.
Shop at discount stores for furniture
First-time condo owners can significantly cut costs by shopping for furniture at discount stores. Keep in mind that discount stores don’t always mean you’re getting items as cheap as possible - big-name furniture stores often offer various high-quality items at a much lower price compared to regular furniture stores.
If you’re really looking to score a big deal, consider thrift stores where hidden gems can be found. It’s possible to find solid wood items that have a unique design. You’ll likely need to restore or paint the items, but you could have a showcase piece in your home with a little work.
Get home insurance
Most lenders will require proof of home insurance before the mortgage funds are officially released, so getting home insurance is a must. That’s not bad, as your insurance policy can include coverage for personal property, liability and more.
Before searching for home insurance, be sure to determine what you need first. Most condo associations have a master policy covering common areas, but individual owners should ensure their personal space and belongings are protected.
Renegotiate your bills
When moving into a condo, it’s a good time to renegotiate some of your bills, specifically your internet, wireless, and TV bills.
First, check with your condo management office to see if your building has any exclusive deals. This can often result in significant savings. You could contact service providers directly and tell them what you’re looking for if there's no special offer. They should be able to offer you a new user deal.
Even if you’re happy with your current services, it’s worth calling your provider to find out if any new promotions are going available. While you have them on the phone, you can update your address.
Join a neighbourhood community group
Facebook has many community groups where you can find people in your neighbourhood who are looking to buy and sell items. This is an easy way to find things cheaply or get rid of things you no longer need.
Community groups are great because there’s less chance of fraud. You can demand pick-up and cash-only deals. Often, people will even give stuff away for free because they’re just looking to declutter.
Additionally, some neighbourhood groups are very active and organize group events or share whenever a sale is nearby.
Increase your mortgage payments
If you can find the extra funds, increasing your mortgage payments is the easiest way to save money. Most new homebuyers will choose monthly payments by default. However, if you opt for advanced bi-weekly payments, where you make one extra mortgage payment a year, you’ll shave years off your mortgage.
Whenever you make an extra payment towards your mortgage, 100% of it goes towards the principal. That said, every mortgage will usually have specific language that states the limit of your pre-payments. Even a modest increase to your current payment can significantly shorten the amortization period.
Barry Choi is a Toronto-based personal finance and travel expert who frequently makes media appearances. His blog
Money We Have is one of Canada’s most trusted sources when it comes to money and travel. As a completely self-taught, do-it-yourself investor with no formal training, he makes money easy to understand for all Canadians. His specialties include personal finance, budget travel, millennial money, credit cards, and trending destinations.