What Closing Costs?
It is important that you make sure you budget for additional costs of buying a home.
Closing costs are to be expected whether you are buying your first home or purchasing a subsequent home.
Some of the common ones are listed below.
Legal Fees
You will be responsible to retain the services of a lawyer to buy your home. They will work together with your lender to prepare and register the official documents required for your mortgage.
The fees vary but start from about $500 plus HST.
Title Insurance
Title insurance is normally required and will be added to your legal fees with your lawyer. Title insurance protects you and your lender from title fraud. The cost is approximately $300.
To learn more about title insurance click here.
Property Insurance
You will be responsible to insure your home and obtain coverage for liability and fire insurance.
To lower this cost make sure you purchase safety items such as a fire extinguisher and fire alarms.
Land Transfer Tax
Land Transfer Tax is a provinical or municipal tax levied when someone purchases a property. It is calculated as a percentage of the property value and will vary by province. To find out more about land transfer tax visit the government website.
Moving Costs
In addition to the closing costs listed above you can expect some other costs related to moving as well. These costs will vary depending on what you choose.
Hiring professional movers can be expensive but also provide you with the assurance your furniture and precious valuables are being moved by professionals. Most moving companies will provide moving insurance in case your valuables are damaged.
If cost is an issue you can enlist friends and family to assist you but you will still need to secure a moving truck that will fit your items.
Additional Costs
Ther are other variable costs that you may incur but should take into consideration.
- Furniture and appliances
- Window coverings
- Landscaping
- Driveway and fencing
It is always important to budget and put aside money for unexpected expenses that may occur. Speak to your Financial Services Officer about setting up a savings plan for this purpose.
Still have questions?
Talk to one of our Financial Services Officers today
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