- Inspection ($400 to $700)
- Appraisal (if required for Financing) ($250 to $500)
- Lawyer or Notary Fees and Expenses ( $1,000 to $2,000) including:
- Searching Title
- Investigating Title
- Survey Certificate (if required)
- Drafting Documents
- Land Title Registration Fees
- GST on legal fees (5%)
- Insurance (must be in place by completion date) rate varies
- Property Transfer Tax (1% of the first $200,000; 2% of the balance)
- Deposit at time of offer; General rule 5% of purchase price
- Downpayment depending on whether or not you are obtaining a mortgage and what kind. The rule is 25% without mortgage insurance
- If mortgage required, mortgage application fee $125 to $300
- If mortgage for more than 75% of property value, the mortgage insurance between 1.25% and 3.75%
- Adjustments for water rates and property taxes depending on what time of year you are purchasing the property
- Utility hook ups: phone, electricity, gas, cable, etc.
- Moving expenses
This is by no means an exhaustive list, but it will give you an idea of some of the additional costs associated with a Real Estate transaction.
Provided that an inspection was one of the subject conditions of your offer, you will schedule a home inspection after the offer has been accepted by the seller(s).
Depending on the size of the property, the home inspection will usually take between two and four hours. As the buyer, you are responsible for paying for the home inspection. Costs vary depending on the inspector but generally range between $400 and $700. Home inspectors usually require payment upon completion of the inspection so it is recommended that you confirm method of payment prior to meeting the inspector on site.
Upon the completion of the home inspection, the inspector will provide you with an oral report. The inspector will follow up with a written report identifying potential areas of concern related to plumbing, electrical, heating, roofing, foundation or structure.
If significant issues are discovered through the home inspection you have the option to withdraw your offer, request that the seller(s) make the necessary repairs or have your agent negotiate a price abatement to offset the cost of the expected repairs.
Home inspections are not intended to be used as a renegotiating tool and cannot be used to get you out of a contract because you have a change of heart.
Property Transfer Tax
Property Transfer Tax (PTT) applies to the sale of all properties. It is calculated as:
a) 1% of the first $200,000 and
b) 2% of the balance of the purchase price
First time home buyers are eligible for a Property Purchase Tax Exemption provided they meet the following criteria:
1) The home must be claimed and used as a principle residence;
2) The buyer must never have previously owned property anywhere else in the world;
3) The buyer must be a Canadian citizen or a resident of
4) The full PTT exemption applies to properties priced at $425,000 and below. There is a partial exemption for properties priced between $425,000 and $450,000, while no exemption is offered for properties priced over $450,000.
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