Deposit: Due upon the acceptance of your purchase offer, a deposit is essentially a gesture of good faith between the buyer and the seller. A minimum deposit is usually around 5-10% of the purchase price. This is something your Realtor will help you with. Appraisal: An appraisal may be required to determine the market value of the property you are buying. If you are putting more than 20% down the appraisal is at your cost and they generally start at $350 and go up depending on the appraisal company, the size of the property and its location. For example, properties over 1800 square feet have a higher cost as well as acreages depending on the amount of land and where they are located. Legal costs and disbursements: A lawyer or notary is vital to any home deal.They are drafting the title deed, preparing the mortgage documents, mediating with the seller's attorney, and transferring the land title and much more. Approximate cost $800 to 1,300. Taxes: GST is payable only on new build homes but is often absorbed by the builder. Be sure to clarify who is handling this. In Ontario, HST of 8% is charged on your mortgage. If the mortgage is insured, the HST is also applied to those fees. Land Transfer Tax: Most provinces charge a land transfer tax, payable by the purchaser, and the amount varies from province to province. This tax is based on the purchase price. In some provinces, first time home buyers who purchase a new home will receive a refund. And don't forget your moving, mail transfer and utility setup costs! |