So you’ve found a perfect house that’s in your price range, your target location, and matches your style. But the question of if you can actually afford it is another thing entirely. Just because a home is in your mortgage price range doesn’t necessarily mean you can afford the actual cost of buying a house. If you’re questioning the actual cost of buying a house, consider the following fees and overlooked aspects to buying a house.
Legal fees will be some of the most significant of your closing fees in the cost of buying a house. These include fees for reviewing an offer, dealing with the terms of a mortgage, registering for property titles, and similar duties. Lawyers are a necessity when purchasing a home, and so too are their fees.
Home Inspection Fees
Just like lawyers, home inspections are a necessity. Home inspections will let you know if there are any issues with the home that go beyond the obvious visuals, this includes things like: foundation damage, electrical issues, water and sewer issues, roof aging, and so on. Expect to pay anywhere from $350 to $600
Land Transfer Tax
Land transfer tax is a tax that is paid on the purchase or lease of any land in Ontario. Normally this tax is paid on the purchase price of the home, though first time homeowners can be refunded for this tax on their yearly taxes.
If you’re buying a new home you will need to pay GST on the sale of the property. This tax is non-existent for resale and mature properties.
Unlike rental properties, with the ownership of a home comes property taxes. These taxes can be paid in a variety of ways, including combined with your mortgage payments, as a single yearly payment, or throughout the duration of the year. Your lawyer will be able to tell you how much of the property tax has already been paid on your new property, and if you owe the former owners for prepaid taxes.
Depending on your home offer, you may have to purchase your own appliances as the former owners have taken theirs. Though this can be good if you wanted to replace them anyway, they are an additional cost upon moving in.
The actual cost of buying a house can significantly differ from the list price. But purchasing a home is an investment, and you will soon see those fee’s turn into equity you’ve gained in the property. If you’re ready to invest in your future and find the home you’ve always wanted, contact us at Mary Roy and Team today!