Monday, 5 May 2014

Buying a Home: What Expenses to Expect

Buying a Home: What Expenses to Expect 
 Budgeting for a new home can be tricky. Not only are there mortgage installments and 
the down payment to consider, there are a host of other—sometimes unexpected—
expenses to add to the equation. The last thing you want is to be caught financially 
unprepared, blindsided by taxes and other hidden costs on closing day. 

These expenses vary: some of them are one-time costs, while others will take the form of 
monthly or yearly installments. Some may not even apply to your particular case. But 
it’s best to educate yourself about all the possibilities, so you will be prepared for any 
situation, armed with the knowledge to budget accordingly for your move. Use the 
following list to determine which costs will apply to your situation prior to structuring 
your budget: 

1. Purchase offer deposit. 

2. Inspection by certified building inspector. 

3. Appraisal fee: 
Your lending institution may request an appraisal of the property. The cost of this 
appraisal is your responsibility. 

4. Survey fee: 
If the home you’re purchasing is a resale (as opposed to a newly built home), your 
lending institution may request an updated property survey. The cost for this 
survey will be your responsibility and will range from $700 to $1000. 

5. Mortgage application at your lending institution. 

6. 5% GST: this fee applies to newly built homes only, or existing homes that have 
recently undergone extensive renovations. 

7. Legal fees: 
A lawyer should be involved in every real estate transaction to review all 
paperwork. Experience and rates offered by lawyers range quite a bit, so shop 
around before you hire. 

8. Homeowner’s insurance: 
Your home will serve as security against your loan for your financial institution. 
You will be required to buy insurance in an amount equal to or greater than the 
mortgage loan. 

9. Land transfer (purchase) tax: 
This tax applies in any situation in which a property changes owners and can vary 

The Graham Pringle Team
705-426-4663 or 800-465-7866

No comments:

Post a Comment