Here is a refresher of the necessary fees involved in buying/selling homes for those of us who are considering moving in the near future:
- Legal: To finalize a home purchase, buyers and sellers must have legal representation to process the deal. Plan to spend around $2,000.
- Closing: Property expenses sellers have paid need to be reimbursed for by the buyer. Such as municipal property tax, utilities and maintenance fees. Up to $2,000.
- Land transfer taxes: This may be the most expensive part of closing costs for buyers of a resale home. Usually 2% of the value of the property. In some cities, you pay land transfer taxes to both provincial and municipal jurisdictions. First-time home buyers may qualify for a significant land transfer tax rebate.
- Home inspection: Home inspections cost as much as $500 for buyers. If there’s something wrong with a property, a realtor can advise if the purchase should be completed.
- Appraisal: Determines a home’s market value. If a mortgage is insured, fees can be waived. If not, budget for around $300.
- Interest: The amount of interest paid between the closing date and first mortgage payment. Plan for at least $1,000.
- Realtor commissions: Sellers should prepare to pay approximately five per cent of the home’s purchase price. The commissions are split between both the buyer and seller’s agents.