Legal

What Does It Really Cost To Buy A Home?

When purchasing a home, it is crucial to understand the costs that will be added to the purchase price. New homeowners often find closing costs surprising. They can range from 1.5% to 2.5% of the purchase cost. 

It is important to budget for these costs in addition to your down payment and moving costs. Before purchasing a home you can always assure for the title insurance price computation.

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What are closing costs? Here's a quick list.

Home inspection: A certified professional inspects a home to determine if it is in good condition. The cost of a home inspection is between $400 and $500

Appraisal for Mortgage: Before processing your mortgage, lenders require that you appraise the property. Appraisals can cost anywhere from $150 to $450, although lenders will often waive this fee. A mortgage application fee may also be charged by some lenders.

Title Insurance or Property Survey: Title Insurance protects buyers from title defects and losses when a new survey cannot be obtained. A survey can run over $1,000 depending on how large the property is, but title insurance usually starts at $275.

Land Transfer Tax: This tax is payable to the province and calculated in tiers as an amount of the home's selling price. A refund of up to $4000 can be granted to first-time homebuyers.

Home insurance: Mortgage lenders will require you to have a certificate of insurance before you take possession. The price of insurance varies depending upon a variety of factors, but it is usually between $750 and $1,500 for most properties.

Legal fees and disbursements: The lawyer will charge fees for professional services such as title search, title deed drafting, and mortgage preparation. The fees can vary but you should expect to pay between $600 to $1,000 and out-of-pocket or miscellaneous costs up to $350.

Flora Wilson