How much of C$47,250 should remain untouched after buying a Montreal duplex?

W

WorthyPorch

Homeowner
C$47,250 sounds like a reasonable cushion on paper, but I am concerned about how quickly several first-year costs could arrive together. That is what I expect to retain after the deposit and estimated closing expenses on a roughly C$641,200, 2-bed Montreal duplex.

My first priority would be cash for essential monthly spending and the insurance excess. After that, I am unsure how much to reserve for inspection findings and moving before postponing furniture purchases.

Would you set the protected amount first and release money for non-urgent items only after a few months, or assign separate limits from the start? I am willing to reduce the purchase budget if that is the safer way to avoid being cash-poor after closing.
 
Work backwards rather than giving every category an equal share. First ring-fence an emergency amount based on your essential monthly spending after purchase, including the mortgage. Add enough to cover the insurance excess without touching that fund. Then allow for moving and inspection-identified work. Furniture comes last; empty rooms are inconvenient, but they are rarely urgent.
 
Does the C$47,250 already account for the timing of the first mortgage payment, insurance and any adjustments or service charges at closing? Also, will the duplex produce rental income or will you carry the full property cost yourself? The cash figure looks comfortable in isolation, but those details could materially change the monthly picture.
 
I would also resist treating “six months of expenses” as the complete answer. A duplex can have costs that arrive in lumps rather than neat monthly amounts. Ask the inspector to separate findings into urgent, near-term and cosmetic items, then seek rough prices for the first two groups before deciding how much is genuinely available for furniture.
 
Good points. The C$47,250 is after the deposit and my current estimate of closing costs, but I have not separately allowed for every possible service charge, the insurance excess or the payment timing. I also need to model the monthly position more carefully rather than relying on the remaining cash total. Furniture can definitely wait; I am leaning toward setting a firm amount that cannot be spent during the first year.
 
Make that firm amount visible as a separate line, not simply whatever remains in your current account. I would use four buckets: untouchable household emergency savings, known purchase and moving costs, inspection-led work, and optional setup. If the first three leave too little breathing room, that is useful evidence that C$641,200 is above your comfortable price even if a lender permits it.
 
One caveat: buying lower does not automatically solve the problem if the cheaper property needs more immediate work. Compare total first-year exposure, not just purchase prices. A slightly more expensive duplex with fewer urgent findings might preserve more cash than a discounted one requiring repairs straight away. The inspection is central to that comparison.
 
Before offering, build three versions of the first year: minimal work, ordinary inspection findings, and a more expensive but plausible repair case. Put moving, immediate repairs, insurance excess, service charges and the first mortgage payment on the timeline when cash actually leaves. If the tougher version breaks your emergency floor, lower the offer or keep looking rather than planning to bridge the gap by delaying necessary work.
 
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