Buying a House? How Much Will it Cost?

Buying a home is a big investment – likely the largest one you will ever make. The cost to buy a home should be carefully considered to avoid the risk of financial difficulty in the future.

Since this decision has a large impact on your wallet, we want to take some time to explore the many costs associated with buying a home. Doing your homework and knowing the average cost of these services in your neighbourhood will help you choose a home within a realistic price range.

Deposit: Depending on your location and the price of a home, you may need to put a deposit on a home as a security measure to ensure you don’t lose it to another interested buyer. If you are required to pay a deposit, it will become part of your down payment once you have purchased the home.

Down Payment: In Canada, the minimum amount you need to put down on a home is 5%. While this is realistic for most first time home buyers, having a down payment of 20% or more will help buyers avoid paying Mortgage Loan Insurance.

Land Transfer Tax: When you buy a home, you are required to pay a land transfer tax to the province upon closing. This tax is normally based on the amount paid for the land, as well as the remaining amount on any mortgage or debt assumed as part of the arrangement to buy the land. Cost will vary depending on your municipality, the size of the land and other factors.  Alberta, Saskatchewan, and parts of Nova Scotia do not have Land Transfer Tax at all, while other provinces use a tiered system.

Appraisal Fee: An appraisal will normally cost between $200 and $300 but can vary depending on your location. This will help prevent you from borrowing more than you need to, and will prevent lenders from giving you too much.

Home Inspection: A home inspection is a necessary step in your home buying process and will normally cost an average of $350 depending on the size, age, and condition of the home. This helps ensure there are no unexpected maintenance or home improvement costs upon purchasing the home.

Property Insurance: While property insurance is likely already something you have factored into your budget, it’s important to do your research and find a reasonable quote that will ensure you are covered should anything unexpected happen.

Mortgage Insurance: There is mortgage life insurance, which is designed to protect the repayment of a mortgage if anything were to happen to you. There is also mortgage loan insurance if your down payment is less than 20% of the total house cost. Premiums for this type of insurance range from 0.5% to 3% and increase if you are self employed.

Lawyer Fees: The fee you will be charged by your lawyer will vary depending on the person representing you and must be paid upon closing. Ask your real estate agent for advice as they likely have a preferred trusted lawyer they can refer you to.

Title Insurance: Title insurance is a one-time-fee that provides protection from losses related to the properties title or ownership. Learn more about what it is in this blog post.

Property Taxes: The cost for property taxes is expressed as a dollar rate for every $1,000 estimated to be the market value of your property.

Maintenance and Energy Costs: Potentially your largest ongoing homeowner expense, these costs include lawn care/ yard work, professional services, additions/upgrades and the cost of keeping the house running year-round. You can use our monthly home budget planner to help map out all of these costs.

Moving Expenses: It’s easy to forget about the small things when moving, but it’s important to remember they can add up quickly! Consider the cost for phone, electricity, and other utility installations and don’t forget about movers, a moving truck and feeding your friends who are helping out!

Now that you have a better idea of the cost to buy a home, it’s time to hit the books to find out how much these services will cost in your area. Make a list, create a budget, and get started!

*Information came from http://blog.remax.ca/much-will-cost-buy-house/

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About Ray Rosettani

As a Real Estate agent for over 25 years, there has not been a day that I have regretted my career path. We all experience stresses associated with work, but I really love my job and take great pride in it. My greatest reward in my career is assisting friends, family and new clients achieve what sometimes they foresee as unachievable in their Real Estate dreams. In order to help make those dreams come true and maximize my time, I am a team leader. My team consists of my full time assistant and 3 other Sales Representatives. The world of “Real Estate” is ever-changing. I started out in the industry when I had the only information about the property and people had to call myself, but now Internet information is constantly changing hand and making it easier for people to find the information. My team and I think it is very important to make sure we are keeping up with the growing demands of technology in order to meet our entire client’s needs. In my many years of work, I have come across many fantastic people in business, people with similar interests in betterment, in helping clients and making sure their interests are always top of mind. These people have not only become great business partners, but also good friends and excellent resources for me and my clients. As for you getting to know a little more about me... I was born and raised in Fort Erie, a place I am glad to call my home. Now, I am married and have also raised my two boys in this great small town. My family and I enjoy traveling and experiencing new places the world has to offer, boating on Lake Erie and the Niagara River and golfing on many of the excellent Fort Erie courses. Fort Erie was “the” place to grow up. We had a little place to hang out called “Crystal Beach”. Even with those days behind us, we still have these great things and many more! Fort Erie is a small quaint community with a large geographical area, allowing room to grow. Our town has great proximity to Buffalo, Niagara Falls and other major cities such as; Toronto, Hamilton, Burlington and so much more. Fort Erie is a great place to raise a family or retire. Our town boasts so much opportunity for any age group or stage of life. Our community has great beaches, trails, parks, recreation centres, schools, shopping, restaurants, entertainments and so much more. Our town is a destination spot for people looking to get away and enjoy the beach and the slower pace of life. Fort Erie really is the best kept secret in the Niagara Region. I don’t have to sell Fort Erie, Fort Erie sells itself!

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