When purchasing a home you will have other expenses aside from the downpayment it is important that you are familiar with these expenses before the transaction closes. Below is summary of what to expect – however, upon your approval & accepted offer to purchase, you will receive completed worksheet detailing what expenses to expect.

• Legal Fees – including disbursements $650 -$800 depending on the lawyer you choose.

• Property transfer tax – (this does not apply for every province) this amount is based on 1% of the purchase price on the first 200,000 and 2% on the remainder. If you have never owned a home before you may be exempt from this tax. Click Here for our Land Transfer Tax Calculator

• Adjustments – There are two types of adjustments interest adjustment and prepaid services. Interest adjustment is the calculation of interest from the completion date to the date the first mortgage payment is calculated from.

Example: your home purchase closes March 17 you have chosen to pay monthly. In this example the interest adjustment date would be April 1st as this is the day your monthly mortgage pmt would start being calculated. Your first full payment being made May 1. Therefore the interest adjustment is the sum of interest due from Mar17-April 1.
Pre paid services include things that the current homeowners have already paid such as: property taxes and oil. Upon closing you will be charged a portion of these prepaid expenses on a prorated basis.

• Appraisals & survey – appraisal is for your protection and determines value most appraisers charge between $185-300. A survey certificate verifies that the home is within its property lines. As most people already have a survey you may have your realtor request this document.
The cost for a survey is aproximately $300.

• Home inspection – this is not required by the lender however it is advisable you have one done. Check with your realtor or check the yellow pages and find a professional inspector. They will go through the home with you and inspect the home for any structural defects. The cost for this service ranges from $200-300.

• Home fire insurance – this cost will vary and is hard to quote as it is based on replacement value. After you have successfully found a home it would be advisable to call a local insurance company and have them determine the cost of this insurance.

• GST and New Homes – unfortunately GST is applicable to new homes this tax is 7% of the purchase price. If the home will be your place of residence you may qualify for a partial rebate depending on what the sale price is. Please contact us for further information pertaining to this tax.