The purchase price of your home is only one of the
costs you'll encounter. Here are other possible costs
you need to consider:
Mortgage
loan insurance: If you are putting less than 20 per
cent of the house value down, you're going to need
mortgage loan insurance. Depending on the lender, the
premium can be added to mortgage payments.
Appraisal fee: Lenders typically loan a
percentage of the home's purchase price or the market
appraisal of the property. Cost depends on the size and
complexity of the assignment.
Land survey: The lender may ask for a current
survey or certificate of location before signing off on
the loan. There can be a substantial cost for having a
new survey done on the property.
Deposit: A deposit normally goes with the formal
offer to purchase.
Insurance: The lender will require proof of
property insurance for the replacement value of the
house and its contents from the day you take ownership.
Title insurance: Provides coverage in case of
problems with the property title among other things. The
cost is relatively low, usually a few hundred dollars.
Application fee: Some lenders will pass on the
cost to process your application. These fees vary and
some lenders will waive entirely if you have other
accounts with them.
Mortgage broker's fee: If you use a mortgage
broker, a fee may be charged to arrange a mortgage on
your behalf.
Home inspection fee: An inspection protects the
buyer by revealing any problems in the property that
you'd want to know before you move in.
Legal fees: You can save some of the legal fees
usually charged by the lender if your lawyer draws up
the mortgage. You'll also pay for disbursements which
are the costs involved in drawing up the title deed,
conducting a title search, and preparing and registering
the mortgage.
Land Transfer Tax:Use the land
transfer tax calculator accessible from the home
page of this website to calculate both your Ontario and
City of Toronto (if applicable) land transfer taxes.
First time home buyers qualify for a maximum $2,000 (LTT
on a $227,500 home) provincial rebate and a maximum
$3,725 (LTT on a $400,000 home) City of Toronto rebate.
Goods and Services Tax: Resale (used) homes are
exempt from GST but it does apply to newly constructed
homes and may qualify for a partial rebate depending on
the sales price and if the home is going to be your
primary place of residence.
For new homes costing
$350,000 or less, you will
receive a GST rebate of 36%
of the GST paid to a maximum
of $8,750. The rebate for
new homes costing between
$350,000 and $450,000
declines to zero on a
proportional basis. GST also
applies to most of the
services provided in
completing the real estate
transaction.
Other costs: These include moving costs, fees
charged by utilities for service hook-ups, property tax
and other adjustments (an adjustment takes place when
the seller has already paid for something in advance and
wants to be credited for the unused portion on the date
the house becomes yours), and ongoing maintenance (condo
fees etc) and utility costs.
Mortgage
loan insurance: If you are putting less than 20 per
cent of the house value down, you're going to need
mortgage loan insurance. Depending on the lender, the
premium can be added to mortgage payments.
