I’m buying my first home. What are some of the costs I should plan for, besides the purchase price?
For first-time home buyers it’s so important to understand the full cost of buying a property.
1. Deposit : Require at the time of offer. This deposit is part of the
Down payment.
2. Home Inspection : A home inspection is the most widely
recognized pre-closing cost. It may be seen as an optional
expense but it’s also a smart one is because a qualified
home inspector, engineer or contractor can identify
underlying problems with a home’s major systems, like
heating and electrical. in a rural area, you should also have
the septic system inspected and water testing conducted
for the good of your health.
3. Appraisal : Some lender may require, as a condition of financing,
that you pay for an appraisal or survey of the property to
ensure the home’s value matches its sale price.
4. Land Transfer Tax : A land transfer tax is up to 2% of the
purchase price. In Toronto, an additional tax of up to 2 %
applies. As a first-time buyer, you should talk with your real
estate agent about whether you are eligible for a refund of
the land transfer tax.
5.Legal fees : Your lawyer will conduct a title search on the home to
ensure the seller can actually sell the property and that
there are no liens against it. They will also register the deed
and mortgage for you.
6. Refund to Seller : You may also need to refund the seller for pre-
paid expenses — property taxes, maintenance fees,
utilities, hot water heater rental fees.
7. Insurance Policies : Three different insurance policies round out the
closing expenses.
1. mortgage insurance: if your down payment is less than
20 per cent of the sale price.
2. Title Insurance : will protect you against title fraud, errors
in surveys and encroachment issues with neighbours.
3. Home Insurance : You need to get Home Insurance
before the closing which will depends on what type of
insurance you are choosing.
8. Moving Expenses : Some gas, hydro and water companies charge
a hook-up fee and you’ll need to pay if you want to forward
your mail from your old address.
9. Renovation or Upgrades : Some house are in move-in condition ,
some may need little TLC. dated kitchen and broken fence.
A fresh coat of paint, some window coverings, or perhaps a
shiny new fridge and stove also add up.
Understanding the full cost of buying a home will help to budget for these final touches.
For first-time home buyers it’s so important to understand the full cost of buying a property.
1. Deposit : Require at the time of offer. This deposit is part of the
Down payment.
2. Home Inspection : A home inspection is the most widely
recognized pre-closing cost. It may be seen as an optional
expense but it’s also a smart one is because a qualified
home inspector, engineer or contractor can identify
underlying problems with a home’s major systems, like
heating and electrical. in a rural area, you should also have
the septic system inspected and water testing conducted
for the good of your health.
3. Appraisal : Some lender may require, as a condition of financing,
that you pay for an appraisal or survey of the property to
ensure the home’s value matches its sale price.
4. Land Transfer Tax : A land transfer tax is up to 2% of the
purchase price. In Toronto, an additional tax of up to 2 %
applies. As a first-time buyer, you should talk with your real
estate agent about whether you are eligible for a refund of
the land transfer tax.
5.Legal fees : Your lawyer will conduct a title search on the home to
ensure the seller can actually sell the property and that
there are no liens against it. They will also register the deed
and mortgage for you.
6. Refund to Seller : You may also need to refund the seller for pre-
paid expenses — property taxes, maintenance fees,
utilities, hot water heater rental fees.
7. Insurance Policies : Three different insurance policies round out the
closing expenses.
1. mortgage insurance: if your down payment is less than
20 per cent of the sale price.
2. Title Insurance : will protect you against title fraud, errors
in surveys and encroachment issues with neighbours.
3. Home Insurance : You need to get Home Insurance
before the closing which will depends on what type of
insurance you are choosing.
8. Moving Expenses : Some gas, hydro and water companies charge
a hook-up fee and you’ll need to pay if you want to forward
your mail from your old address.
9. Renovation or Upgrades : Some house are in move-in condition ,
some may need little TLC. dated kitchen and broken fence.
A fresh coat of paint, some window coverings, or perhaps a
shiny new fridge and stove also add up.
Understanding the full cost of buying a home will help to budget for these final touches.
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