Posted onOctober 16/2015
Are you thinking about buying a new home?
The home-buying process can be confusing and difficult without the proper resources, but with the right information, you will be just fine.
By now, you probably know what houses are in your price range and what areas you are interested in buying in. What’s next? Aside from your down payment and mortgage payments that cover the purchase price of your new home, you have to start thinking about closing costs as well.
Closing costs come into play once the purchase of your home is finalized. These costs are different in each province and sometimes even vary city-to-city. It is important to have a good real estate agent or knowledge of the process, mortgage or lender services assistance and lawyer or notary; this way you are aware of all of the financial obligations, rules, regulations and pertinent information.
What are closing costs?
The term ‘closing costs’ is a blanket term for any payments associated with the purchase of the home that aren’t included in the original price, and that come once the purchase is complete.
- Home Inspection Fee
A top-to-bottom inspection of the house to make sure it is up to scratch before you make your purchase.
- Appraisal Fee
Professional opinion on the market value of the home.
Examples include home insurance, fire insurance, or other insurance costs protecting your assets from unforeseen damage.
- Legal costs and disbursements
To protect your legal interests and out of pocket fees for searches, registrations, etc.
- Land transfer tax
Also known as land registration fees. This cost varies by province.
- GST/New Home Warranty
If you are buying a new home, you may be obligated to pay these costs.
- Mortgage Application and Processing Fees
Insurer charges a fee to process the application.
- Down payment
Around 20% of the purchase price.
We offer more detailed information on our website that will provide you with a more in-depth look into the cost associated with buying a home, read more here.
The costs for many of these services range by province and by the level of service provided – start early and get estimates from the companies you can so you know what will be coming out of your bank account. The dedicated staff at Northwood Mortgage provide stability, savings and service. Contact us to find out more information or to book a consultation.