Extra Costs
You save for a down payment and assume this can all be applied to the house you’re purchasing. Wrong! You may be surprised at the variety of other costs that must be paid up front. Some costs are almost always unexpected.
The more common costs, which vary by province, include:
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Lawyer fees
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Fees for the registration of deed and mortgage(s)
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Mortgage processing fees
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Mortgage insurance and application fee (if you have a high ratio mortgage—see Glossary of Terms)
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GST
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Adjustments for property taxes and/or utility costs already paid by the existing owner
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Connection charges for utilities such as gas, electricity and water
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Land Transfer tax—a fee paid to the municipal and/or provincial government for the transferring of property from seller to buyer.
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Search of Title—land registry (usually for older homes) and land title (simply registers the title back to the Seller)
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Home Inspection (if desired)
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Moving expenses
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Appliances, furniture, draperies, and gardening equipment
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Landscaping
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Decoration
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Repairs
Generally, you can expect your closings costs to range from 3-5% of the sale price of your new home. Closing costs and the remainder of your down payment are usually due a couple of days before your actual closing date and the payments are made directly to your lawyer.
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kelly@homesinbrockville.com or paul@homesinbrockville.com | www.homesinbrockville.com