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Final Cost of Buying a Home

Final Cost of Buying a Home

by Arran McLellan 


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...


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NOTE: MLS® property information is provided under copyright© by the Victoria Real Estate Board. The information is from sources deemed reliable, but should not be relied upon without independent verification. This website may only be used by consumers for the purpose of locating and purchasing real estate.