Real Costs

How much does it really cost?

When you buy a piece of property there are additional expenses beyond the purchase price – your monthly payment (principle and interest), private mortgage insurance (PMI), taxes and home owners’ dues. Factoring in each of these expenses will reflect a more accurate property cost. A lender factors each of these costs when considering you for a loan, which is why we recommend you first work through the numbers.

Following are explanations of many of the expenses which make up the total cost of a property

Mortgage: A mortgage is the loan by the leading institution. While there are several different types of loans they all consist of an interest rate, pay back period, principle and interest. To help you determine exactly how much you can afford we recommend getting pre-qualified. Before you begin to search for a condominium you should get pre-approved for a loan. This is a key time saver and expedites the entire process from beginning to end.

Private Mortgage Insurance (PMI): PMI is a form of insurance to protect lenders who offer loans of greater than 80% loan to value ratio. PMI is paid every month along with your mortgage, until you’ve built up the 20% in equity in your new residence. Once you have acquired that much equity, talk with your lender about canceling your PMI.

Taxes: Taxes are what you pay into the local government for upkeep of your neighborhood. They vary from region to region and generally increase from one buyer to the next. 2% of the value of the property is a safe number to use for planning purposes.

Homeowners Dues: Dues are the fee (generally monthly) the owners association establishes to meet the cost of maintaining the complex. How much you actually pay is generally determined by the cost to maintain the facility divided by the number of units. Dues generally run between 1 – 2%.


509 20th Avenue SW
Calgary Alberta T2S 0E8
(403) 245-4477
(403) 592-6719



Royal LePage Benchmark
509 20 Avenue SW
Calgary, Alberta, T2S0E8
(403) 245-4477
(403) 592-6719



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