Home Buying Expenses/ Closing Cost
Buying a home involves one-time costs and monthly expenses (property
taxes, mortgage, condo fee; if applicable, home insurance and
utilities). The largest one-time cost is the down payment. It usually
represents between 5%-20% of purchase price for Canadians, based on their income and
credit history or 35% of purchase price for non residents and newcomers
to Canada.
The total cost of buying a home/condo involves not only the purchase
price of the property, but also other closing costs. These expenses are necessary to complete the purchase, but are
outside of the purchase price for the property. Fees, types of services
provided, and procedures required in the closing process will vary by
provincial jurisdiction. The closing costs are approximately 3%-4% of
your home/condo
price (excluding
Mortgage insurance fee ).
Home/Condo buying expenses
|
Closing Cost
|
| Mortgage application fee |
At time of application |
| Property appraisal fee |
Closing |
| Property tax hold back |
Closing |
| Home inspection |
Upon offer acceptance |
| Legal fees and disbursements |
Closing |
| Title
insurance |
Closing |
| Deed and/or mortgage registration |
Closing |
| Property Survey (sometimes provided by seller) |
Closing |
| Land transfer tax |
Closing |
| Mortgage interest adjustment/ Mortgage assumption
fees (if applicable) |
Closing |
| Adjustments for utilities, property tax, condo fees etc. |
Closing |
| Home Closing Insurance (optional) |
Closing |
|
Home insurance |
On going |
|
Property Taxes |
On going |
| Connection charges for utilities |
Date of move |
| Moving expenses |
Date of move |
Additional closing costs when buying a new builder home/condo:
New builder closing costs can be almost twice more than that of
resale property. They can be as follows:
HST on property price, if not included (rebate could go to the
builder and is often reduced from the home price), condominium
reserve fund (condos only), water/ hydro meter installation charges,
paving holdback, landscaping/
tree planting, TARION
registration (Ontario New Home Warranty), school/education levy,
subdivision damage deposit, subdivision grading deposit, legal fee
relating to mortgages arranged through the builder, vendor's lawyer
insurance levy surcharges, HST on extras and appliances, realty
tax deposits, upgrades from builder standard finishes etc. Other costs may include
condominium occupancy fees (for condos only), furnishings, appliances and repairs, if any.
Caution! Above adjustments can add up
to thousands of dollars, if not properly reviewed and capped. When
buying your new builder condominium with Amit, you will receive
a
free review of builder's agreement of sale and disclosure
documents by an expert real estate lawyer. Amit will make sure that
your investment is protected and you save more.
Typical on-going costs:
Typical monthly costs incurred with home ownership are property
taxes, mortgage payments, condo fees (for
condos), utility costs,
maintenance and home insurance.
Already signed the agreement of purchase and sale.
What's next?
Amit can answer all your questions concerning home buying
expenses/closing costs. Amit serves
Mississauga, specializes in residential
real estate-resale homes, condos, and new builder condo apartments.
|
