How much cash should remain after closing on a Montreal villa?

[WorthyPorch]

I want to keep enough cash after purchase that an early repair does not become a crisis. The difficulty is deciding whether C$48,600 provides that margin on a Montreal 1-bed villa priced around C$1,836,000.

That figure is what I expect to retain once the deposit and estimated closing expenses are paid, although the inspection could still reveal routine first-year work. Before proceeding, which amounts should be ring-fenced for the emergency fund, moving, the first mortgage payment, service charges, insurance excess and urgent repairs? Furniture can wait. I am prepared to choose a cheaper property if the confirmed costs show that this reserve is too thin.

 

[ezra_leases]

I would keep the emergency fund separate first, including enough room for the first mortgage payment and the insurance excess. Then reserve money for inspection-related repairs and moving. Furniture would come last and could be bought gradually. C$48,600 sounds substantial alone, but it is not a large percentage of a C$1,836,000 purchase if several costs arrive together.

 

[SamFord]

Does the C$48,600 already account for any service charges and the exact timing of the first mortgage payment? Also, “ordinary work” is too broad to budget from—an inspection finding that needs prompt attention is different from cosmetic decorating. I would wait for the report before deciding how much, if anything, is available for furniture.

 

[yard.steady]

I would be more cautious than simply dividing the C$48,600 into neat categories. First list unavoidable moving costs, any service charges, the insurance excess and every inspection item that cannot reasonably wait. Ring-fence those amounts plus your emergency savings; whatever remains is the furnishing budget. If that leaves almost nothing, buying below your maximum is the sensible adjustment rather than shrinking the emergency fund.