How much does it really cost to buy a house?

It’s important to know exactly what costs in addition to the purchase price you’ll be responsible for when you buy a new home. closing costs They are often a surprise to new homeowners and can be quite substantial (1.5-2.5% of the purchase price), so it’s important to budget for them in addition to your down payment, moving costs and decoration. What are closing costs? Here is a short list.

home inspection: An inspection by a certified professional benefits the buyer and helps alleviate concerns regarding a property’s condition. A home inspection costs between $400 and $500.

Mortgage Appraisal: Lenders require an appraisal of a property to determine market value before processing your mortgage. While the lender often waives, appraisals can range from $150 to $450. Some lenders also charge a mortgage application fee.

Property inspection or title insurance: When no new survey is available, title insurance protects buyers from loss due to title defects. While a survey can cost upwards of $1,000 depending on the size of the property, title insurance typically costs around $275.

Property Transfer Tax: Payable to the province, this tax is calculated in tiers as a percentage of a home’s sales price (visit ). First-time homebuyers may qualify for a rebate of up to $4,000.

Home insurance: Mortgage lenders require a certificate of insurance when you take possession of your home. Like all insurance, the price varies based on a number of variables, but ranges from $750 to $1,500 for most properties.

Settings (between Seller and Buyer): Buyers are obligated to reimburse the seller for any advance payments they have made in connection with the property, such as property taxes, utilities, condominium fees, or oil tank fill-ups.

Legal Fees and Disbursements: Your attorney will charge you fees for professional services, including title search, deed drafting, and mortgage preparation. These fees vary, but expect to pay between $600 and $1,000, plus out-of-pocket and miscellaneous up to $350.

Harmonized Sales Tax (HST): Resale homes are not subject to HST, however HST is paid on the sales price of a newly built or significantly renovated home. The HST is also collected from professional fees and Canadian Mortgage and Housing Corporation (CMHC) insurance fees.

Not all of these costs may apply, and depending on your circumstances, others may apply. It is best to speak to your attorney for more information.

Add a Comment

Your email address will not be published. Required fields are marked *