Moving Out to Rent

You are on: Things to consider tab

You are on: Funding your move tab

You are on: Paying Expenses tab

Savings for 3-month salary cushion:

We highly recommend that you try to have 3 month’s salary set aside to cover rent, bills and other living expenses in the event of job loss or any other unexpected situation. Be realistic and include groceries, transportation and even food for your pet dog if required. This is best done through either forced or automatic savings.

Save for expenses related to maintenance and minor repairs:
Pipes spring leaks, door locks get jammed and appliances malfunction. In some rental agreements, the tenant is expected to cover expenses for minor repairs up to a certain value. So, you should have savings set aside for this purpose, plus some extra for maintenance of your personal appliances or furniture. You should try to save for this, but, you can also use a credit card for emergencies of this nature.

Payment solutions:
To simplify the rent paying process and avoid your landlord having to knock on your door to remind you that rent is due, we recommend that you:

• Set up a standing order to automatically - debit your transaction account and credit your landlord’s account on the day that rent is due.
• Also, you can utilize Internet, ATM and Telephone banking services to easily pay utility bills; monitor your accounts and keep track of expenses; ensure that you have enough funds to cover rent and confirm loans and standing orders are being paid on time. Ask one of our friendly representatives which of these services are available to you.

When shopping at furniture and appliance stores etc., the credit card is the most convenient tool. If you already have a credit card, you may need to request a limit increase to pay for costly items that exceed your credit limit. Also, extra cash is always required when setting up to rent. A chequing account with an overdraft facility will come in very handy when you have to pay servicemen who repair your furniture or appliances. After deciding how much of your savings you will use, work out the total financing required for other related expenses. You can borrow for all your setting-up needs including:

• Purchase of furniture and appliances
• First month’s deposit
• Rental agency fee
• Temporary storage fee
• Transport costs

Protect your investment:

While your landlord has to pay property insurance, you should certainly consider protecting your personal assets – furniture, appliances, computer etc. You should know that it costs very little to insure these items for their replacement value. That way, if they are stolen or damaged, you can quickly replace them and get yourself back on your feet. Ask about our Contents Insurance today.

You are on: Saving for home down-payment tab

You may be planning to eventually buy a home of your own. If you want to make this a reality, remember:

• You would usually need a down payment, plus closing costs (legal fees, stamp duty, etc.) to qualify for a mortgage. The best way to acquire this is through Forced or Automatic Savings.
• Don’t rent an apartment that is so costly that you cannot afford to save.
• Consider having a roommate if the rental agreement allows so you can split the rent.
• It is not recommended that you rent a property for more than 25 to 30% of your monthly income.

You should have an automatic savings plan to a high interest yielding account or a loan to save your down payment and closing cost.

7 steps from home: 
Go through the following steps to make sure that, when you’re mentally ready to buy your home, you will also be financially ready:

1. Give yourself a deadline for buying your home (1, 2, 3, 4, 5 years etc.) I want my home in x years.
2. Make a list of your ‘must have’ features e.g. master bedroom with private bathroom or a room that could be converted to a music or art studio, study, workshop etc.
3. Find out the going prices for houses with these features (check classified ads, do site visits etc.)
4. Work out your estimated down payment plus closing costs. 
5. Work out how much you have to save yearly to have the down payment and legal fees (that would be the total of step 4 above divided by the number of years you decided in step 1) 
6. Work out how much you need to be saving monthly starting this month (step 5 divided by 12)
7. Visit your branch and set up an Automatic Savings plan for your home purchase...today.

You are on: Renter's Checklist tab