Purchase Costs & Monthly Expenses
There are a lot of additional costs that you must be prepared for when buying a home, and it is important that you Plan for them. You will need to have some additional money set aside to cover these costs unless you have already made arrangements with your bank to cover these costs and absorb them into your mortgage.
Your largest initial expense will be your deposit. This is generally 5% of the purchase price and will be credited back to you at closing. Technically, any amount can be put down as a deposit.
You should also be prepared to pay:
- Legal fees and disbursements
- Land Transfer Tax
- Adjustments (payable to the vendor, such as taxes,utilities)
- Home inspection fees or any other inspection fees (water quality, septic, well, fireplace)
- Mortgage broker’s fees (if applicable)
- Mortgage loan insurance premium (if less than 20% down) plus application fee
- Moving expenses
- Title Insurance (optional purchase through lawyer)
Additionally, you will incur regular expenses on a monthly, quarterly, or yearly basis such as:
- Mortgage payments (you can do these weekly, bi-weekly, or monthly)
- Water/sewer payments
- Electricity and gas services
- Cable/telephone/internet services
- Property taxes
- Strata or Condo fees
- Repair/Maintenance expenses
- Homeowners or Condo insurance
- Renovations, repairs, paint, carpeting, and window coverings
Don’t let this list of additional expenses worry you about buying a new home. All of these costs are part of purchasing a home and are well worth it. If you are interested in buying real estate, be sure to contact me. When working with you, I will sit down and go over a detailed list of expenses you will incur when buying a home. There are different expenses depending on the type of home you purchase. I can also put you in contact with many different vendors throughout the city that will be able to provide you competitive pricing on many of the associated costs. Be sure to contact me if you are looking to buy in the local real estate market.
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