For first-time home buyers, all the fees and extra costs beyond what they are paying for their new house may come as a shock. So it's best to know about them upfront to avoid being caught off guard. One of the most common questions asked is, "Do I pay the Realtor?" And the answer to that one is "No." The seller pays this cost, and it's typically a percentage of the selling price. However, the following are the responsibility of the buyer:
- Appraisal Fee. An appraisal is an estimate of the value of the home. Your bank or credit union may require that the property be appraised at your expense. This can range between $250 and $350.
- The Home Inspection fee. A home inspection, which costs around $500, is a report on the condition of your home. You may want to make your inspection a condition of your Offer to Purchase, to make sure you are aware of the condition of the house before you agree to buy.
- Deposit. A deposit is required to ensure that the buyer is serious about purchasing the home. It can form part of your downpayment, but it must be paid when you make the Offer to Purchase.
- Mortgage Loan Insurance Premium. If you have less than a 20 per cent down payment, your bank or credit union may require that you buy mortgage loan insurance. You can add the mortgage insurance premium to your mortgage or pay the full amount when you close the sale of the house.
- Estopple Certificate Fee. This fee costs up to $100, but applies only if you are buying a condominium in a strata unit or condominium and costs up to $100.
- Land Registration Fee. This is charged in some provinces and territories, and while the charge varies depending on the province, it is usually a percentage of the home's price.
- Property Transfer Tax. In British Columbia, you will have to pay a property transfer tax on your purchase, these fees can be waived if you are a first time home buyer if your property falls below the threshold amount of $425,000. If over $425,000 or you do not have the exemption you will be assessed the full tax amount.
- Prepaid Property Taxes and/or Utility Bills. These charges are meant to reimburse the person who is selling the house for amounts already paid for, such as property taxes, filling the oil tank, ect.
- Property Insurance. The insurance covers the cost of replacing the structure of your home and hits contents. Property insurance must be in place on the day you close the sale.
- Survey or Certificate of Location Cost. The bank or credit union may ask for an up-to-date survey or certificate of location prior to finalizing the mortgage loan. This can range in price from $1,000 to $2,000
- Legal Feels. These fees must be paid when the sale is completed and costs a minimum of $500.
- Title Insurance. Your bank or credit union, or lawyer/notary, may suggest insurance to cover any loss caused by any problems with ownership of the property.
Other Costs to Consider
-Appliances
-Gardening Expenses
-Snow Clearing Equipment
-Window Coverings
-Decorating materials
-Hand Tools
-Moving Expenses
-Renovations or repairs
-Service hook-up fees
-Condominium fees (Strata Fees)
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