BUYING COSTS

UNEXPECTED & EXPECTED

Common Costs For Buyers
Funds to cover your down payment and closing costs will most likely have to be in the form of a bank draft or wire transfer to your lawyer's trust account. Your lawyer will detail the exact amounts required.  Home buyers are focused on securing the required downpayment fall blind to the additional costs associated with buying a home. This unexpected financial hit can greatly add unwanted stress. Learn More.

COMMON COSTS

Deposit
The deposit will become part of the offer as a sign of good faith which typically is 5% of the purchase price.
Homes Inspection / Buyers Due Diligence
A qualified Home Inspector can identify and or discover underlying problems in a home. The cost can vary. For one of the biggest finical purchases you will ever make , having peace of mind of knowing exactly what you are purchasing is well worth the cost.
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COMMON & HIDDEN CLOSING COSTS

PRIOR TO CLOSING

Down Payment - Balance of Down Payment
Lenders require a down payment from buyers, typically up to 20% of the appraised value of the homes purchase price. Balance of down payment is due after initial deposit with offer.
Land Transfer Tax & Title Registration Fees
When buying a home, many people overlook the significant cost of land transfer tax. When you acquire a property (and the land it rests on), you must pay a tax to the government after the transaction closes. The amount paid depends on the value of your property. For First time home buyers when purchasing a home transfer tax rebates may apply. 
Mortgage Insurance Premiums If Applicable CMHC
Mortgage default insurance, also referred to as Canada Mortgage and housing Corporation CMHC insurance, is mandatory in Canada for down payments of less than 20% of the purchase price. Mortgage default insurance protects lenders in the event a borrower stops making payments and defaults on their mortgage loan. CMHC insurance premiums are paid for in full by the borrower at the start of their mortgage.
Legal Fees And Associate Disbursements: couriers, copies etc.
There are a number of legal documents involved in the purchase of your new home. The cost of a lawyer can be costly and buyers should give them ample time to research a real estate lawyer that is best suited for their case. Your lawyer will perform a Title Search to ensure there are no liens against the property and will register your deed and mortgage. 
Title Insurance Policy Premiums
Requested by your mortgage lender, title insurance is an insurance policy that protects residential or commercial property owners and their lenders against losses related to the property’s title or ownership.
Survey Expenses If Applicable
You or your lender may require that a survey be done either to satisfy you or your lender.
Pro-Rated Amounts - Adjustments on Closing

Adjustment is the amount that has been  prepaid on an item that could include: property tax, utilities, prepaid common expenses in a condo ect. by the Seller which is applied beyond the closing date and will benefit the purchaser after the closing date.  The amount that has been over paid by the Seller is pro-rated, and a credit is given to the seller as an adjustment on closing.

Home Insurance
Your mortgage lender may require proof of your home insurance on your new home before funds will be released for the purchase of the sale. Basic home insurance package for residence cover three main areas: Buildings , Contents and Liability.
Harmonized Sales Tax - HST
In a real estate contact will read either Included In, meaning the seller will be responsible for paying the HST at close, or it might read In addition requested by the seller which means the buyer will be responsible for the HST come closing. 
Tarion New Home Warranty Program
Guarantees protection to buyers from various issues that may emerge on builds of new homes. Plus deposit protection is offered. Enrolment fee maybe included in the purchase price, or it may be due at closing. Visit www.tarion.com, for more information.
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COMMON CLOSING COSTS

AFTER CLOSING

Renovations and Repairs
If purchasing a fixer upper or a home that requires additional repairs before its move in ready, take consideration the costs and time required to get the job done. Even the smallest jobs can becoming challenging and cost much more then expected. 
Appliances, Furniture, and Decor
Buyers are faced with the challenge of fitting what once worked in there old layout to a new layout that which they thought looked much bigger. Furniture layout can be deceiving compared to actual size of the room. Don't be afraid to bust out your measuring tape and see if your current large sectional couch fits or if your large dinning room set will fit.
Moving Costs
Moving can cost just as much as a home inspection when you hire professionals. Using professional movers is a preference, if you are able to move yourself this could give you a good opportunity to save a good chunk of money that you could save.
Utility and Service Hook-Ups
Be sure to check with your providers on cost and timing for hook-ups: hydro, gas, water & telecommunications, to ensure a smooth transition having funds available.
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HOME BUYERS

BUYING COSTS

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THINKING OF BUYING

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PRE-FIRM COSTS

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Elizabeth Hobson Toronto Real Estate Agent
Credit Status Report Fees
All mortgage lenders will compile a credit check to help secure your mortgage loan, It's advise to verify your credit rating in the beginning of your home search. Identifying and resolving any credit problems to improve your credit rating will provide benefits, such as preferred rates from lenders and home insurers. To acquire a copy of your credit report - two major credit bureaus; Equifax and TransUnion.
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