The purchase of your home is the biggest cost but not the only one.
1. Application/Mortgage Broker Fee - There can be a fee attached as the application costs lenders money as there can be credit and income issues to deal with.
2. Appraisal Fee - The appraisal amount of the home usually determines the amount of mortgage you will receive. This is sometimes done at the Buyers cost.
3. Land Survey Fee - If there is some issue with the boundaries or encroachments such as part of your neighbours house on your property, this is a cost that the Buyer will absorb.
4. Insurance - If you are applying for a high-ratio mortgage - borrowing more than 80% of the homes value - you will have to pay mortgage insurance as a protection to the lender if there is default on payments. You must obtain fire and extended coverage as the home is security against the mortgage.
5. Legal Fees - These are the conveyancing fees that a lawyer will charge to clear title, drawing up the title deed and registering the mortgage.
6. Property Transfer Tax - This is the tax that is paid on the transfer of a property from one party to another. It is calculated at 1% on 1st $200,000 and 2% on the balance. First time homebuyers are exempt if the price of the home is $425,000 and under.
7. HST - this applies to the sale of new homes. Resale homes are exempt from this tax. You can qualify for a new housing rebate on new construction up to $42,500 if the value of the home is $850,000 or less
Purchasing a home is one of the most rewarding and satisfying experiences you can have. Make sure to budget for cost such as utilities, taxes, maintenance etc...