Home Buying Costs

 

Deposit

Paid when you make an Offer to Purchase and will be part of your down payment.  Deposits are usually around 5%.  Sellers may request that the deposit be increased once all conditions have been satisfied.

Down Payment

At least 5% is required for a high-ratio mortgage and at least 20% for a conventional mortgage.

Mortgage Loan Insurance Premium

If yours is a high ratio mortgage (less than 20% down payment), you may need mortgage loan insurance.  Your lender may add the insurance premium to your mortgage or you can pay it in full upon closing.  The amount of the premium varies and can range between 0.65% and 2.75%.

Appraisal Fee

Your mortgage lender may require the property be appraised at your expense.  Cost is usually between $250 and $400.  Some banks will waive this fee in return for your mortgage.

Home Inspection Fee

Generally ranges around $500 depending on the complexities of the inspection.

Property Transfer Tax

1% on the first $200,000 of the purchase price and 2% on the balance over $200,000.  First time buyers can qualify for an exemption.  Call me and I will be glad to help you define if you qualify.

Adjustments

These costs are a portion of prepaid property expenses such as property taxes and municipal utilities pre-paid by the seller.

Property Insurance

Required by the mortgage lender.  Must be in place on closing day.

Legal Fees and Disbursements

Paid upon closing and cost a minimum of $600.  Your lawyer will also bill you for any disbursements they incur such as land titles costs to check on the legal status of the purchased property.

HST
Paybale on new homes.

Cost after Possession

-          Appliances.  Check to see what comes with the house.

-          Gardening equipment

-          Window treatments.  Check to see what comes with the house

-          Decorating materials.  Paint, wallpaper, flooring

-          Hand tools.  You will need some basic hand tools for your new home

-          Moving expenses including van rental and boxes

-          You may be required to pay a deposit for utilities such as telephone and heating services.

-          Condominium fees

-          Repairs, upgrades, renovations.  Depending on the condition of the home

-          Household items.  You may need any number of household items such as trash cans, shower curtains, etc.