While an aura of mystery can surround the true cost of buying a home, this is no time for smoke and mirrors! An experienced Realtor will shed light on the closing process, help you establish a realistic budget & recommend trusted professionals to help you along the way.
Before you close…
A Home Inspection by a qualified home inspector is a smart way to identify any underlying problems with your home and its major systems. Your mortgage lender (bank) may also request an Appraisal of the property you’re purchasing to ensure its value matches the sale price.
In Ontario, a Land Transfer Tax of up to 2 percent applies but can vary by region; first-time homebuyers are eligible for a tax refund.
HST applies to newly-constructed homes, though buyers may qualify for certain government rebates. In the case of new construction, you will want to ask your Realtor about costs associated with the Tarion new home warranty program.
Mortgage Insurance is required if the down payment on your home is less than 20 percent of the sale price and rates depend on how much you are borrowing. You must also have Home Insurance before lenders will release funds for the close of the sale.
Your lawyer will charge Legal Fees to oversee the documents and contracts involved in the purchase of your home, to register your deed and mortgage, and perform a Title Search to ensure there are no liens against the home you are purchasing. Title Insurance will protect you against title fraud, survey errors, encroachment issues and more.
Adjustments are costs that were paid in advance by the seller, but must be reimbursed once you take possession of the home. These can include property taxes, maintenance fees, and the rental of equipment such as hot-water heaters.
Moving Costs & Utility Hook-ups can be confirmed in advance, so do your homework to avoid unwelcome surprises. Many new homeowners will also want to leave themselves a budget for Repairs, Renovations or updates in décor.