Home purchase associated costs!

Probable associated costs of the Real Estate purchase transaction you will need to take into consideration:

Up-Front Costs
·

Mortgage Loan Insurance Premium.

If yours is a high ratio mortgage (less than 25% down payment), you may need mortgage loan insurance. To get this insurance, you will be asked to pay the required insurance premium. Your lender may add the mortgage insurance premium to your mortgage or ask you to pay it in full upon closing. ·

Appraisal Fee.

Your mortgage lender may require that the property be appraised at your expense. An appraisal is an estimate of the value of the home. The cost is usually paid when you contract for those services. ·

Deposit.

This is part of your down payment and must be paid when you make an Offer to Purchase. The cost varies, but it may be up to 5% of the purchase price.

Down Payment.

At least 5% of the purchase price is usually required for a high-ratio mortgage and at least 25% of the purchase price is usually required for a conventional mortgage. ·

Home Inspection Fee.

For your protection, this is a good condition to include in your Offer to Purchase. A home inspection is a report on the condition of the home and the cost, normally depends on the complexities of the inspection. ·

Land Transfer Tax

.You may have to pay this provincial charge upon closing. The cost is a percentage of the property's purchase price. ·

Prepaid Vendor Costs.

. To reimburse the vendor for pre-paid costs such as property taxes, filling the oil tank, etc. ·

Property Insurance.

The mortgage lender requires insurance on the home to protect their interest, namely the mortgage. This insurance covers the cost of replacing the structure of the home and its contents. Property insurance must be in place on closing day. ·

Survey or Certificate of Location Cost.

The mortgage lender may ask for an up to date survey or certificate of location prior to finalizing the mortgage loan. If the seller does not have one or does not agree to get one, you will have to pay for it yourself. It can cost in the $1,000 to $2,000 range.

Well Quality Inspection

. If the home has a well, you should have the well inspected to ensure that the well is adequate and the water is potable.

Legal Fees and Disbursements

. Must be paid upon closing and generally the cost is a minimum of $500 (plus GST/PST).Your lawyer will also bill you direct costs to check on the legal status of your property.

Title Insurance.

Your lender or lawyer/notary may suggest title insurance to cover loss caused by defects of title to the property.

Estoppel Certificate Fee.

This applies if you are buying a condominium or strata unit and could cost up to $100.

Condominium Fees

. There are monthly fees if purchasing a condominium.

Other Costs

  • Appliances: . Sometimes comes with the house, need to assess age and need.
  • Tools and Equipment: basic home repair tools, shovel(s), lawn mower, etc
  • Decorating: Items such as painting, minor repairs, drapes, carpet, etc.
  • Dehumidifier. May be required to control moisture levels, especially in older homes.
  • Moving Expenses.
  • Service Hook-Up Fees. Need to arrange for utilities. You may be required to pay a deposit for utilities such as telephone, cable, gas, etc
David Johnson-Sales Representative- Keller Williams Realty Ltd Ottawa, ON -
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