TYPICAL UP FRONT COSTS
What To Think About When Buying A Home....
Typical Up Front Costs:
1. Deposit: Part of your down payment that is paid when you make an Offer to purchase. Amount will vary.
2. Down payment: Minimum of 5% of purchase price. Please note if less than 20% of purchase price is being used as a down payment then an additional mortgage loan insurance will be payable (usually added on to the mortgage, however the lender may ask to be paid in full upon closing).
3. Appraisal Fee: Your lender may require the property be appraised at your expense. Usually $250 - $350.
4. Home Inspection: If you choose to have an inspection you can expect to pay $400 - $500.
5. Land Transfer Tax: A percentage of the purchase price. Visit http://www.landtransfertax.com/
6. Property Insurance: Required by the lender because the home is security for the mortgage. This insurance covers the cost of replacing the structure of your home and its contents, and must be in place on closing day.
7. Legal fees and disbursements: To be paid on closing. Amount may vary but approximately $1300 - $2500 plus applicable taxes. Ensure your lawyer's quote includes all related expenses and disbursements, not just legal fees.
8. Title insurance: Optional but may be recommended by your lawyer. Covers loss caused by defects of title to the property encroachment issues, existing liens against the property's title, title fraud, undischarged mortgages and other issues relating to the property's previous owners. Approximate cost is $250 - $400.
9. Property Survey: The lender may ask for an up to date survey. If the Seller does not have one or does not agree to get one you may need to pay for it. Approximately $1000 - $2000. Title insurance, however is generally acceptable, but confirm with the lender.
10. Status Certificate: If a condominium is purchased a status certificate detailing basic and essential information concerning the unit and condominium corporation (ex. financial status, rules and regulations) should be obtained for your lawyer to review. Approximate cost is $100.
11. Septic and well inspections: When purchasing a rural property without access to municipal water and sewer it is important to confirm that the well and septic systems are in good working order. Costs may vary.
If you have more questions please contact me at firstname.lastname@example.org or you can find me on Facebook with Home with Teri Shaw, Instagram and Twitter.
Also if you need a lawyer you can check out Brown Lawyers of Friends of Downtown Dundas for all your legal services: http://brownlawyerspc.com/ 905-627-5487
If you need insurance recommendations I can help you with that too, please contact me.
Most of all I want to help you find your home and provide you with all the information you need.