TORONTO, ONTARIO — (Marketwire) — 08/14/12 — One of the most challenging aspects of home ownership is facing unexpected maintenance costs. When calculating monthly expenses to maintain a home, it-s important to include not only everyday costs such as mortgage payments, utilities and property taxes, but also to factor in possible home repair expenses.
According to a survey conducted by Statistics Canada, the most common home repairs are done on plumbing fixtures, patios, fences and driveways, heating and air conditioning systems, and painting the interior or exterior of one-s home.
“Making home upgrades can add significant value to a home; however, it-s crucial that homeowners plan ahead for costs associated with unexpected repairs,” said Frances Hinojosa, Mortgage Expert, BMO Bank of Montreal. “Renovation projects come in different shapes and sizes and often occur out of the blue. Contributing small amounts to an emergency fund for repairs can go a long way in preparing for unforeseen expenses.”
A portion of the monthly homeowner association fee, or condo fee, paid by condominium owners in Canada, is earmarked for a reserve fund to cover anticipated costs of repairs. Condo fees are based on the size and location of the condominium; For example, the average fee in Ontario is $300-$350 per month.
Ms. Hinojosa suggested that with half of Canadian homeowners (51 per cent) planning to renovate their homes, they should treat their house like a condo. By adding in the cost of a reserve fund to the monthly household budget, homeowners can prevent a financial blow from unplanned additional costs.
BMO offers the following financial tips to Canadians looking to make home repairs:
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $525 billion as at April 30, 2012, and more than 46,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.
Contacts:
Media Contacts:
Jessica Park, Toronto
(416) 867-3996
Veronica Bart, Toronto
(416) 867-3996
Valerie Doucet, Montreal
(514) 877-1873
Laurie Grant, Vancouver
(604) 665-7596
Internet:
Twitter: @BMOmedia