Costs When Buying A Home
The purchase price of your home is only one of the costs you will encounter. Here are some other costs that you MUST consider:
- Mortgage Loan Insurance: If you are putting less than 20% of the house value down, you are going to need mrtgage loan insurance. Depending on the lender, the premium can be added to mortgage payments.
- Apprisal Fee: Lender MAY request an appraisal of the property. The cost of this depends on the size and complexity of the assignment. Lenders typically loan a percentage of the home's purchase price or the market appraisal of the property.
- Land Survey: The lender may ask for a current survey of the property. To have a new and up-to-date survey done can be costly.
- Insurance: The lender will require proof of property insurance for the replacement value of the house and its contents from the day you take ownership.
- Title Insurance: Provides coverage in case of problems with the property title among other things. The cost is relativdely low but well worth having.
- Application Fee: Some lenders will pass on the cost to process your application.
- Mortgage Broker's Fee: If you use a mortgage broker, a fee MAY be charged to arrange a mortgage on your behalf. Talk to your realtor about this one.
- Home Inspection Fee: A visual inspection should be done to protect the buyer by revealing major problems, if any.
- Legal Fees: You should have a real estate lawyer prepare the final papers. You will also pay for disabursements which are the costs involved in drawing up the title deed, conducting a title search, and disbursements regarding the property you are about to purchase.
- HST - Resale homes are exempt from HST, but GST is applied to the price of a new home but you may qualify for a partial rebate depending on the sale price.
- Other Costs: These will include moving costs, fees charged by utilities for service hook-ups, property tax and other adjustments (an adjustment takes place when the seller has already paid for something in advance and wants to be credited for the unused portion on the date the house becomes yours), and ongoing maintenance (condo fees etc) and utility costs.