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Hidden Costs When Buying a Home

06 August, 2019

When you’re purchasing a home, many expenses are often overlooked. It is essential to take into account several costs:

  1. Land Transfer Tax is the tax paid to the province when the transaction closes, almost always calculated as a percentage of property value.
  2. Approximate Legal Fees for the lawyer that will help you purchase your home. Legal fees can vary depending on the case, but generally includes fees for registering the mortgage, completing a tax certificate, and doing a title search on the property. In addition, there will likely be administrative fees.
  3. HST on Legal Fees (13%). The supply of legal services by the lawyer to the buyer is taxable.
  4. Home Inspection costs that are paid to the home inspector. It can range from $350 – $550 depending on the Home Inspector.
  5. Real Estate Fees includes the commission paid to the real estate agent for executing services such as helping you find a home, scheduling showings, and paperwork.
  6. Other costs such as warranty enrolment fees, in which some builders will include in the purchase price. Depending on the case, the builder may include additional charges such as Title insurance, Utility services deposits, and Builder and Educational Levies.

THE INFORMATION ON THIS ARTICLE IS OF A GENERAL NATURE. THIS ARTICLE IS DESIGNED TO BE INFORMATIONAL AND EDUCATIONAL AND IS NOT TO BE RELIED UPON OR CONSTRUED AS REAL ESTATE, INVESTMENT, LEGAL, FINANCIAL OR OTHER PROFESSIONAL ADVICE. BIG CITY REALTY INC., BROKERAGE IS NOT LIABLE FOR THE CONSEQUENCES OF YOUR DECISIONS OR ACTIONS TAKEN IN RELIANCE UPON OR AS A RESULT OF THE INFORMATION PROVIDED. BIG CITY REALTY INC., BROKERAGE IS NOT RESPONSIBLE FOR ERRORS OR OMISSIONS. YOU SHOULD NOT ACT OR ABSTAIN FROM ACTING BASED UPON INFORMATION OBTAINED FROM THIS ARTICLE WITHOUT FIRST CONSULTING APPROPRIATE PROFESSIONAL ADVISORS.

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