Buying

Common Home Buying Expenses

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Being aware of potential costs involved  will allow you to budget more effectively and help to avoid any last minute surprises.

 
Budgeting for a new home can be tricky. There are down payments, mortgage installments and a host of other – sometimes unexpected – expenses. These expenses vary. Some are one-time costs, while others will take the form of monthly or yearly installments. Some may not even apply to your particular situation.

 
Here are some common home buying expenses that might apply to your situation:

 

Deposit

This amount forms part of the purchase price and is often due 24 hours after subject removals.

 

Home Inspection

This fee can vary depending on the type of inspections you choose.

 

Appraisal Fee

Your lender may request an appraisal of the property as part of your mortgage application.

 

Property Survey

If the home you’re purchasing is a resale (as opposed to a newly built home), your lending institution may request an updated property survey.

 

GST

This fee generally applies to newly built homes or existing homes that have recently undergone extensive renovations. That said, there are other instances where this may apply.

 

Legal Fees

A lawyer or notary should be involved in every real estate transaction to review all paperwork. Experience and rates range quite a bit.

 

Commission

This is the fee paid upon the successful completion of your home and is split between your real estate agent and the cooperating brokerage.

 

Insurance

Your home will serve as security against your loan for your financial institution. You may be required to buy insurance in an amount equal to or greater than the mortgage.

 

Property Transfer Tax

This tax applies in any situation in which a property changes owners and can vary depending on the value of the property.

 

Moving Expenses

These can include movers, temporary storage and supplies.

 

Service Charges

Any utilities you arrange for at your new home, such as cable, internet or telephone may come with a transfer/installation fee.

 

Renovations

In order to “make it their own,” many new homeowners like to paint or invest in other renovations prior to or upon moving in to their new home. If this is your plan, budget accordingly.

 

Maintenance Fees

If you are moving to a new condominium, you will likely be charged a monthly condo fee which covers the costs of common area maintenance.

 

Buying a home is an exciting journey and it’s important to be financially prepared for all the costs involved. From legal fees to moving expenses, it all adds up and affects your overall budget. Remember that while this list covers many common expenses, it’s not complete because every home purchase is unique.

 

If you’re thinking about buying a home and want some guidance throughout the process, I’d love to help. Feel free to reach out and let’s get started finding the perfect home for you!