The purchase price of your home is only one of the fees you'll encounter. Here are other possible costs you should be aware of:
Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance. Depending on the lender, the premium can be added to mortgage payments.
Appraisal fee: Lenders typically loan a percentage of the home's purchase price or the market appraisal of the property. Cost depends on the size and complexity of the assignment.
Deposit: A deposit needs to be submitted when you have a formal offer to purchase completed.
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 relatively low, usually a few hundred dollars.
Home inspection fee: An inspection protects the buyer by revealing any problems in the property that you'd want to know before you move in.
Legal fees: You will have to pay for disbursements which are the costs involved in drawing up the title deed, conducting a title search, and preparing and registering the mortgage.
Land Transfer Tax: If you are purchasing a property in Ontario then you will have to pay a Land transfer tax. First time home buyers qualify for a maximum $2,000 rebate on a $227,500 home for the provincial rebate and a maximum of $3,725 on a $400,000 home for the City of Toronto rebate. To calculate your exact Land Transfer Tax use our land transfer tax calculator here
Goods and Services Tax: Resale (used) homes are exempt from GST but it does apply to newly constructed homes and may qualify for a partial rebate depending on the sales price and if the home is going to be your primary place of residence.
For new homes costing $350,000 or less, you will receive a GST rebate of 36% of the GST paid to a maximum of $8,750. The rebate for new homes costing between $350,000 and $450,000 declines to zero on a proportional basis. GST also applies to most of the services provided in completing the real estate transaction.
Other costs: These 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.
For more information on costs involved in buying a home call us at 416-901-8777 or email us at email@example.com