Real Estate

Breakdown of monthly expenses (condo)

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  • Jan 17th, 2018 2:06 pm
Newbie
Jan 12, 2018
7 posts

Breakdown of monthly expenses (condo)

A question to you current condo owners. What does your monthly expense routine look like? Specifically, how, when, what gets deducted/withdrawn when. Since the mortgage is likely not with your bank, what do those withdrawals look like? Are they pre-authorized payments (direct debits) from your chequing account? When is that pulled, the beginning of the month or a specific day? What about maintenance fees? Is that like a bill from the property management company that you can pay with a credit card just like cell phone bill? And what about property taxes? Is that a standalone bill? Is it monthly? What does it look like and how do you pay for it? Or is that something that's reflected on and deducted when you file your taxes?

Also, when you obtain a mortgage, how does the down payment process work? Do you give them the routing/account number to the savings account where the money is?

I know these are questions about specific mechanics/processes, but that's precisely what I am curious about.
6 replies
Deal Fanatic
May 31, 2007
5018 posts
2175 upvotes
InANutShell wrote: A question to you current condo owners. What does your monthly expense routine look like? Specifically, how, when, what gets deducted/withdrawn when. Since the mortgage is likely not with your bank, what do those withdrawals look like? Are they pre-authorized payments (direct debits) from your chequing account? When is that pulled, the beginning of the month or a specific day? What about maintenance fees? Is that like a bill from the property management company that you can pay with a credit card just like cell phone bill? And what about property taxes? Is that a standalone bill? Is it monthly? What does it look like and how do you pay for it? Or is that something that's reflected on and deducted when you file your taxes?

Also, when you obtain a mortgage, how does the down payment process work? Do you give them the routing/account number to the savings account where the money is?

I know these are questions about specific mechanics/processes, but that's precisely what I am curious about.
I'll try and help.

Mortgage is pulled from your chequing account. Even if it's two different banks. You select which day and frequency payment is due, when mortgage is set up. Or you can change later on. I assume most do bi-weekly payments, same day as your pay.


Maintenance fees were usually once a month. (I recall beginning of month) You provide void cheque to management office. They pull from chequing account. You can't pay with CC, as far as I know.

Property taxes are usually paid to directly to the city, again you choose the frequency they offer. Monthly, quarterly, bi-yeary, usually. Pulled from your chequing account. OR sometimes if you have high ratio mortgage, the specific bank policy pays the taxes on your behalf, and debits your chequing account. Check with your bank's policy.

When you apply for mortgage, you have to show physical proof where downpayment came from. I also recall they might require 3-6 months of history showing you didn't borrow the money somehow and it's legit savings. So you might have to print 6 moths of savings history, proving you actually saved the money. If the money was a gift, you have to sign waiver promising and/or provide proof it's not borrowed from somewhere else.

Work with a mortage broker they will guide you all the way.

Hope that helps. Good luck!
Deal Guru
User avatar
Feb 2, 2014
11231 posts
3350 upvotes
Toronto
Jungle wrote: I'll try and help.

Mortgage is pulled from your chequing account. Even if it's two different banks. You select which day and frequency payment is due, when mortgage is set up. Or you can change later on. I assume most do bi-weekly payments, same day as your pay.


Maintenance fees were usually once a month. (I recall beginning of month) You provide void cheque to management office. They pull from chequing account. You can't pay with CC, as far as I know.

Property taxes are usually paid to directly to the city, again you choose the frequency they offer. Monthly, quarterly, bi-yeary, usually. Pulled from your chequing account. OR sometimes if you have high ratio mortgage, the specific bank policy pays the taxes on your behalf, and debits your chequing account. Check with your bank's policy.

When you apply for mortgage, you have to show physical proof where downpayment came from. I also recall they might require 3-6 months of history showing you didn't borrow the money somehow and it's legit savings. So you might have to print 6 moths of savings history, proving you actually saved the money. If the money was a gift, you have to sign waiver promising and/or provide proof it's not borrowed from somewhere else.

Work with a mortage broker they will guide you all the way.

Hope that helps. Good luck!
Good reply @Jungle.

Just want to add, down payment and closing costs are paid to your lawyer around the closing date (via certified cheque).
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Member
Sep 23, 2011
298 posts
89 upvotes
Toronto
-property taxes - the tax bill from the city comes in mail (same as when we lived in a house), we pay it online (currently - by credit card using payTM)
-maint. fee and hydro (hydro is billed separately) - initially was set up by condo mgmt as pre-approved withdrawal from bank account, but later we asked Toronto Hydro for bills in mail, so we can pay with PayTM
Deal Addict
Dec 4, 2016
2011 posts
1030 upvotes
I received my down payment as a gift from my father, and I was not asked where the down payment came from. Can't remember how long that down payment sat in my account. Didn't feel very long. That was 7.5 years ago.
Newbie
Jan 12, 2018
7 posts
Jungle wrote: I'll try and help.

Mortgage is pulled from your chequing account. Even if it's two different banks. You select which day and frequency payment is due, when mortgage is set up. Or you can change later on. I assume most do bi-weekly payments, same day as your pay.


Maintenance fees were usually once a month. (I recall beginning of month) You provide void cheque to management office. They pull from chequing account. You can't pay with CC, as far as I know.

Property taxes are usually paid to directly to the city, again you choose the frequency they offer. Monthly, quarterly, bi-yeary, usually. Pulled from your chequing account. OR sometimes if you have high ratio mortgage, the specific bank policy pays the taxes on your behalf, and debits your chequing account. Check with your bank's policy.

When you apply for mortgage, you have to show physical proof where downpayment came from. I also recall they might require 3-6 months of history showing you didn't borrow the money somehow and it's legit savings. So you might have to print 6 moths of savings history, proving you actually saved the money. If the money was a gift, you have to sign waiver promising and/or provide proof it's not borrowed from somewhere else.

Work with a mortage broker they will guide you all the way.

Hope that helps. Good luck!
CdnRealEstateGuy wrote: Good reply @Jungle.

Just want to add, down payment and closing costs are paid to your lawyer around the closing date (via certified cheque).
Thanks so much for this. Just one thing to clarify about paying the lawyer. Is he getting a certified cheque for the deposit or for the down payment (minus the original deposit)?
Deal Guru
User avatar
Feb 2, 2014
11231 posts
3350 upvotes
Toronto
Deposit goes to the listing brokerage in a trust account.

Remainder (minus the deposit) of down payment and closing costs go the lawyer on closing.

Both should be certified cheques.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

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