Homebuyers today, know that they need Money for a Deposit, a Down payment as well as regular monthly mortgage payments... However, many homebuyers are not aware of the Additional Hidden Costs that they should be prepared to pay when buying a new home: Feel free to get a Pen and Paper and Jot these costs down.
First hidden cost -Property valuation fee- Apprx : $150 - $200 In order to qualify for a mortgage, lending institutions require the property to be appraised. The buyer is normally obligated to hire the property appraiser.
Home inspection fees - Apprx : $500 It is usually the buyer's obligation to hire a home inspector to evaluate the condition of the home and provide you with a written report. While not mandatory, many people make a Home inspection a condition in their Offer.
Land transfer tax -Varies based on Province A land transfer tax is based on the purchase price. It is up to the buyer to pay the tax. In some cases, first time homebuyers may be exempt from a portion of this cost. You can obtain further details about land transfer tax on provincial or municipal websites to help you estimate the cost.
Legal fees & Related Expenses -Apprx: $800 - $2,000 These fees vary by province and are subject to GST or HST. Ensure your lawyer's quote includes all related expenses and disbursements, not just legal fees.
Prepaid Property tax & Utilities- Apprx: $400- $500 You will be required to reimburse the Seller for any prepaid property taxes or utility bills.
Home insurance- Apprx $450/year
Protection for your home and contents
Lending institutions normally require the buyer to purchase title insurance to cover any title-related issues that may arise with respect to the property.
Title insurance-Apprx: $250
Title insurance is optional.
Insurance costs for high-ratio mortgages- Variable If your down payment is less than 20% of the purchase price, you must pay a one-time insurance premium on your mortgage amount. You can pay the premium before closing, or it can be added to your mortgage. If it is added to your mortgage, you will pay interest on it.
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