move? How to budget for a new life

Your first concern is fulfilling your obligations in your current city or town. “I think a lot of people are surprised when they terminate their mortgage,” Hexter said. “They’re two or three years [into a mortgage term] But not realizing this can sometimes result in a fine of $10,000 to $15,000. It takes into account how much it would cost you to exit your current arrangement if you were starting from scratch. Are you Chailease? Are you on a mid-term mortgage? What impact will this have? “

Plan for hidden moving costs and time gaps

When it comes to moving, if your move-out and move-in dates don’t coincide, Hexter noted that unexpected costs could include temporary storage of your possessions and hotel or Airbnb fees if you need to stay somewhere. Ask your real estate agent for recommended moving companies, and their recommendations may even come with discounts, he adds.

Otherwise, be wary of the cheapest moving quote; it could be a scam. Check with the Canadian Moving Association, which has collected resources and examples of common moving scams, which often start with very low quotes.

Brandon Wiebe, a fee-based financial planner with Money Helps in Saskatoon, says not all furniture is worth taking with you when moving. An upfront cost to consider is purchasing new furniture when you land. There’s also the cost of travel to get there, whether it’s airfare or gas to drive.

Test your lifestyle before moving in

Another landing cost that’s hard to track on a spreadsheet is your support system.

“One of the most important things you want to consider is how your support system might change if you don’t have access to your friends and family,” Wiebe said. “That could mean you don’t actually have anyone to help you move. Maybe you’re thinking about renovating something that a family member can help you with, but you can’t do it yourself. Or, actually, a big issue is if you have kids, maybe a parent is helping with childcare.”

If you’re lucky enough to have that option, Wiebe recommends taking a more cautious “try before you buy” approach to relocation. Rent a house in the city first, don’t buy it right away. If the lifestyle doesn’t match, flipping a property within a few years can be costly in terms of recouping real estate agent and closing costs, he said.

Some of Wiebe’s clients spend time looking at houses in Montreal to get a feel for the city. “They ended up buying it and were very happy,” he said.

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Bigger cities don’t always mean higher costs

Your projected budget in a new, larger city should not always assume that it will be more expensive in every way.

For example, Hexter noted that rural properties have their own unique costs — from septic tanks to clearing snow from long driveways. Property maintenance can be expensive. Property tax rates also vary widely across the country.

Some cities allow you to live car-free if they are walkable and have a strong transit system.

“I think people in Saskatoon probably think everything is going to be more expensive [in another city]”, Wiebe said. “You know, you can actually save money in another city on things like transportation and even heating in the winter. ”

Budget smarter with research and expert advice

As for the local cost of living, from groceries to gas, you can research online to get an idea of ​​how expensive your lifestyle might be in your new location.

Hexter recommends using ChatGPT to summarize reliable sources and cost calculations. You could put your credit card bill into an AI tool and ask it to predict the cost of your lifestyle in another city. Or you can do it yourself – take a look at your expenses and research those costs where you plan to land.

You can also talk to your real estate agent, especially if they have experience with relocating clients. “Lean on your professionals,” Hexter said. “If you’re working with a real estate agent, discuss relocation costs with them. A real estate agent with experience in relocation will have a professional partner who can help and allow you to ask the right questions, and may also uncover any blind spots.”

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