Costs of Buying a Home
The purchase price of your home is not the only cost of buying a home that you will encounter, although it is by far the largest. This video provides a short list of some of the other typical costs you’ll need to consider in your purchasing budget. If you are planning on purchasing a home, or investing in real estate in Guelph, I would be honoured to help you with the buying process. Call/Text me today at 519-760-3227.
Home Inspection Fee:
The peace of mind you’ll have knowing exactly what you’re getting when you buy a home is well worth the inspection fee. Your REALTOR® will advise you about home inspection services and can help arrange the details. Typical cost is in the $350-$600 range.
Land Transfer Tax:
This tax is payable by anyone who purchases an Ontario property. It is calculated on the purchase price and varies from 0.5% to 2%. However, it may be lowered or eliminated for first-time home buyers under specific circumstances (View our First Time Home Buyer Incentives blog post HERE).
CLICK HERE for a great link to a Land Transfer Tax Calculator.
Lawyer Fees:
You will need to hire a lawyer to handle all closing arrangements for your purchase. Estimate $1,500-2,500 for the total cost, but speak to your lawyer about what their fees are. They may vary depending on a number of factors.
Mortgage Appraisal Fee:
Your mortgage lender may require you to pay a home appraisal fee before approving your mortgage. Check with your mortgage broker to determine what their fee is.
HST on New Home Purchases:
A portion of the HST is charged as a cost of buying a newly constructed home. However, this amount is often included in the price quoted by the home builder. However, more expensive homes may not have the full HST cost built in. As such, you may be responsible for the remainder.
To sum up, there are more costs than the advertised purchase price. CLICK HERE to schedule a personal and confidential Home Buying Consultation. You can expect to receive professional credible insights. In addition to this, you will learn how to make your home buying experience rewarding and enjoyable. Most importantly, you can be rest assured that you will never be pressured to buy.