The coronavirus pandemic is giving people an extra reason to pack up and move away from big cities, but one expert says it could be costly in the long-run.
Finance expert Kelley Keehn recently joined The Morning Show to break down what you need to consider before moving out of the city.
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The obvious costs when it comes to moving include your mortgage, down payment and potential moving truck charges, but Kheen says there are other important factors people often forget.
“If you’re coming in with less than 20 per cent [of your mortgage] you’re going to be paying CMHC insurance,” she said.
According to the Financial Consumer Agency of Canada, you must pay 20 per cent of the purchase price of your home if it costs $1 million or more. Self-employed individuals or those with a poor credit history may require a larger down payment.
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If you’re moving to a community where it is cheaper to buy a home than to rent in a big city, Keehn advises you should also consider the cost of furnishing an entire house versus a condo.
And if you still work or have other obligations in the city while living further away, planning ahead is key.
Keehn said you should think about commuting and the likelihood of having to plan overnight accommodations during bad weather.
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In the event that you move away from the city with the intention of eventually returning, she also encourages people to think about depreciation.
“Will you be able to sell your home for what you paid for it? … If you’re going to ditch that car that you now bought, depreciation is killer.”
Before finalizing your big decision to move, she encourages Canadians to try bargaining for lower rent options.
“With this mass exodus, why not talk to your landlord and see if you can actually get a better deal before you’re thinking about buying. Explore all of your options.”
For more tips you should consider before moving out of the city, watch the full video above.