Your Personal Finances

Home Ownership

One of the best things you can do when you buy a new home is hire a home inspector. Whenever you buy a resale home, you should make sure a qualified home inspector does a detailed examination - before the deal is final.

According to the Canadian Housing and Mortgage Corporation (CHMC), a home inspector will examine the home's major systems including electrical, plumbing, heating, roofing, foundation, interior and exterior.

CAHPI says that leaking or wet basements are the number one household problem. Inspectors can see the tell-tale signs if the basement of a house is a problem area. Improper electrical wiring is another top problem. Many older houses were wired when the requirements were much less stringent than they are today. If they are not up to code, an expensive upgrade may have to be taken into account. Plumbing defects also rank high in housing problems, especially leaky faucets or old piping.

While the home inspector will not make the buying decision for you, you will find out if any of these or other areas are cause for concern and will cost you some extra unbudgeted cash.

You should always try to be at the house during the inspection so that the inspector can point out in person any issues you will need to deal with if the purchase proceeds. In addition, an inspector can explain maintenance and operating procedures you will need to follow once you do take possession of the home.

An inspection may cost a few hundred dollars but it's well worth the price.