Closing Costs
There are many costs that homebuyers incur, especially upon
purchasing their first home, that they should expect to pay. Some of the expenses
related to buying a home are one-time costs, while others are continuing costs.
One-Time Costs
Your largest cost at the beginning is your down
payment. As a first time buyer, this would likely represent only 5 — 10% of the
purchase price. However, you should be prepared to pay for additional costs,
such as:
- Legal Fees & Disbursements
- GST (if applicable)
- Property or Land Transfer Tax
- Adjustments (reimbursed to the vendor)
- Interest
- Property Taxes
- Utility Payments
- Strata or Condominium Fees
- Estoppel certificate fee
- Survey Fee
- Home Inspection Fee
- Water quality and quantity certificate
- Appraisal Fee
- Mortgage broker's fee (if applicable)
- Mortgage Loan Insurance Premium (if less that 25% down)
- Mortgage Loan Insurance Application Fee (if less that 25% down)
- Moving Expenses
- Renovations and repairs
Furniture, paint, carpeting, window coverings, etc.
- Service and Utility Hook-up Fees
- Property/Condominium Insurance
- Mortgage Application Fee
- Deed and/or Mortgage Registration Fee
Additional Expenses
Additionally, once you have purchased your home, you will incur
regular expenses on a monthly, quarterly or yearly basis. Some of these costs
include:
- Mortgage Payment
- Water and/or Sewer Payments
- Electricity and Gas Services
- Cable and Telephone Services
- Property Taxes
- Strata or Condo Fees
- Repair/maintenance Expenses
- Homeowner's Insurance
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