| Property
Taxes
If
the Vendor has paid a portion of the taxes in advance, you
will be responsible for reimbursing the Vendor on closing.
Plus, if you have a high-ratio mortgage, your lender may require
that you have your property taxes added to your mortgage payments.
Utility
Fees
Utility
fees are calculated through a meter so you will be responsible
for paying what you have used up on the meter.
Land
Transfer Tax
This
applies in most provinces and ranges from 1% to 4%. For instance,
in Ontario, you'll pay 1% of the first $55,000 - $250,000
and up to 2% of any amount over $400,000.
Survey
Fee
Your
lender will require an up-to-date survey. You can make it
a condition of the Offer to Purchase that the Vendor provide
a survey, or you will have to have one done. If there is no
survey available, you may purchase "Title Insurance"
in lieu of a survey which saves you about $500 - 700.
Appraisal
Fee
A
basic appraisal usually costs under $250.
Property
Insurance
Your
lender will insist that you have insurance on your property
because your home is used as security for the mortgage.
Service
Charges
You'll
be charged for telephone, cable and a variety of other services
that you hook up at your new home.
Lawyer
(Notary) Fees
Each
real estate transaction requires the assistance of a legal
professional to review the Offer to Purchase, search the title,
draw up the mortgage documents and take care of the details
on the day of closing. Lawyers fees range widely depending
on the complexity of the transaction. Ask your RE/MAX agent
to recommend a lawyer. And remember, fees can be negotiated.
Mortgage
Loan Insurance Premium and Application Fee
Mortgage
loan insurance will be necessary if you have a high-ratio
mortgage (less that 25% down payment). The application usually
costs $75 with a valid appraisal, otherwise it's $235. The
actual insurance premium will range from .5% to 3.75% of the
purchase price and is added onto the mortgage.
Mortgage
Broker Fee
Some
brokers may charge as much as 2% of the total mortgage to
find you a lender. In most cases though, the broker is paid
by the lender. Buyers with good credit should not have to
pay a fee.
Moving
Costs
Whether
you've decided to do it yourself or hire a moving company,
now is the time to budget for the costs involved.
Estoppel
Certificate
If you're moving into a condominium (complex not necessarily
a high-rise) this certificate outlines the condominium corporation's
financial and legal state. It will cost you up to $50.
Condominium
Fees
These monthly fees vary from complex to complex. The fees
are applied to everything from grounds keeping and carpet
cleaning to security personnel and health club maintenance.
Depending on the type of structure, these fees will usually
be a few hundred dollars.
Home
Inspection Fee
For around $300, depending on the size of your home, you'll
receive a complete written report about the condition of the
structure. Do your research and hire a reputable firm.
Renovation
and Repairs
Your home inspection may indicate the need for some general
repairs or a major project. Have some money set aside, particularly
if you are purchasing an older home.
Redecoration
Your taste will be different from the previous owner. Set
aside money to paint and wallpaper. Prepare a list of things
you can live with, for now, and decorating faux pas that need
immediate alteration.
Water
Quality Certification
If you are purchasing a home with a well, you'll want to ensure
the quality of the water. This will cost approximately $50
to $100. |
