What Expenses Should I Expect?
You've found your dream home, the seller has accepted your offer, your loan has been approved and you're eager to move into your new home. But before you get the key, there's one more step--the closing.
The last thing you want is to be caught financially unprepared, blindsided by taxes andother hidden costs on closing day. Some expenses will vary while others will take theform of monthly or yearly instalments. Let us guide you through some budgeting priorto writing an offer to ensure that you can afford a purchase.
Deposit for the Offer to Purchase. Before you put pen to paper, you must ensure that you have adeposit to show you are a serious buyer. This becomes extremely critical if you are competing for aproperty or you want to indicate your offer is solid. You need to put a minimum 5% down payment foryour home, so a strong deposit would be half of that amount or more. You will need this amountwhen you write your offer in the form of a bank draft or personal cheque and it will be held in Trustwith our brokerage.
Home Insection. Payment due upon service which ranges between $350-$450 depending onsquare footage and location.
Sewer Line Inspection. Payment due upon service which ranges between $100-$250 depending onlocation.
Furnace & Chimney Inspection. Payment due upon service which ranges between $100-$350depending on location.
Fireplace Inspection. Payment due upon service which ranges between $150-$250 depending onlocation.
Appraisal Fee. Your lending institution may request an appraisal of the property. Payment is dueupon service which ranges between $350-$550 depending on location but most often, the fee will berolled into your mortgage.
Surveyor's Fee. Your lending institution may request an updated property survey. The cost for thisranges from $700-$1000 and could take weeks to book. Another option is to purchase Title Insurancefrom your lawyer when signing closing documents which is a one-time fee of approximately $200-$300.
Legal Fees & Land Title Transfer Taxes. Experience and rates offered by lawyers vary, so shoparound before you hire. This is due upon closing and is also dependent on the purchase price. We suggest budgeting 1-1.5% of the purchase price