It is important that when you decide to buy a home you have a full understanding of the costs associated with your purchase. People often assume the only cost of buying a home in our real estate market is the price of the home.
There are additional costs that you must be prepared for when buying a home, and it is important that you are fully aware of them. You will need to have additional money set aside to cover these costs unless you have already made arrangements with your bank to cover these costs and absorb them into your mortgage.
You should be prepared to pay:
- Legal fees and disbursements
- When buying a new home (newly built / never lived in) you are sometimes responsible for GST
- Property or land transfer tax
- Adjustments (payable to the vendor, such as taxes)
- If in a Condominium type of ownership, condo fees
- Home inspection fees or any other ancillary service fees requested by you as the buyer (furnace inspection, appraisal fee, water quality/quantity tests for acreages)
- Mortgage broker’s fees (if applicable)
- Mortgage loan insurance premium (if less than 20% down) plus application fee
- Moving expenses
- Renovations, repairs, paint, carpeting, and window coverings
- Property/Condominium Insurance
Your largest initial expense will be your deposit. As a first time buyer (or even a repeat buyer) this should generally be at least 5% of the purchase price.
Once you have purchased your home you may incur regular expenses on a monthly, quarterly, or yearly basis such as:
- Mortgage payments
- Water/sewer payments
- Electricity and gas services
- Cable/telephone/internet services
- Property taxes
- Condo fees
- Repair/Maintenance expenses
- Homeowners insurance
All of these costs are part of purchasing a home and are well worth it. We will sit down and go over a detailed list of expenses you will incur when buying a home. There are different expenses depending on the type of home you purchase. I can also put you in contact with many different vendors throughout the city that will be able to provide you competitive pricing on many of the associated costs.
Call me and we will discuss buying a home in the local real estate market.