Budgeting for a new home can be tricky here are What Expenses to Expect. Not only are there mortgage installments and the down payment to consider, but there is also a host of other—sometimes unexpected—expenses to add to the equation. The last thing you want is to be financially unprepared, blindsided by taxes and additional hidden costs on closing day.
These expenses vary: some of them are one-time costs, while others will take the form of monthly or yearly installments. Some may not even apply to your particular case. Educate yourself with the knowledge to budget accordingly for your move. Use the following list to determine which costs will apply to your situation before structuring your budget:
Purchase offer deposit.
Inspection by a certified building inspector.
Your lending institution may request an appraisal of the property. The cost of this appraisal is your responsibility.
If the home you’re purchasing is a resale (as opposed to a newly built home), your lending institution may request an updated property survey. The cost for this survey will be your responsibility and will range from $700 to $1000.
Mortgage application at your lending institution.
This fee applies to newly built homes only or existing homes that have recently undergone extensive renovations.
A lawyer should be involved in every real estate transaction to review all paperwork. Experience and rates offered by lawyers range quite a bit, so shop around before you hire.
Your home will serve as security against your loan for your financial institution. You will be required to buy insurance in an amount equal to or greater than the mortgage loan.
Land transfer (purchase) tax:
This tax applies to any situation in which a property changes owners and can vary greatly.
Service and or Installation charges:
Any utilities you arrange for at your new home, such as cable or telephone, may come with an installation fee.
Renovation of new home:
In order to “make it their own,” many new homeowners like to paint or invest in other renovations prior to or upon moving in to their new home. If this is your plan, budget accordingly.
If you are moving to a new condominium, you will likely be charged a monthly condo fee which covers the costs of common area maintenance.
Contact Us for more information.