Budgeting for a new home involves more than just mortgage installments and a down payment. There are numerous additional expenses, some expected and some not, that you need to be aware of to avoid being caught financially unprepared on closing day. These costs can vary widely—some are one-time expenses, while others are ongoing. Here’s a comprehensive list to help you plan your budget and avoid surprises:

  1. Purchase Offer Deposit: This is a deposit made when you make an offer on a home.

  2. Inspection by a Certified Building Inspector: Ensure the property is in good condition.

  3. Appraisal Fee: Your lender may require an appraisal of the property, and the cost is typically your responsibility.

  4. Survey Fee: If you're buying a resale home, your lender might need an updated property survey, costing between $700 and $1,000.

  5. Mortgage Application Fee: Some lenders charge a fee when you apply for a mortgage.

  6. GST (Goods and Services Tax): A 5% GST applies to newly built homes or homes that have undergone extensive renovations.

  7. Legal Fees: Hiring a lawyer to review all paperwork is crucial. Rates vary, so shop around for the best deal.

  8. Homeowner’s Insurance: Your lender will require insurance that covers at least the amount of the mortgage.

  9. Land Transfer Tax: This tax is applicable whenever a property changes hands and can vary significantly.

  10. Moving Expenses: Factor in the cost of moving your belongings to your new home.

  11. Service Charges: Installation fees for utilities such as cable and telephone may apply.

  12. Interest Adjustments: Be prepared for any interest adjustments on your mortgage.

  13. Renovation Costs: Many new homeowners invest in painting or other renovations to personalize their new home. Budget accordingly.

  14. Maintenance Fees: If you're moving into a condo, there will likely be monthly condo fees for common area maintenance.

By considering these expenses in advance, you can structure your budget more accurately and ensure a smoother home-buying process.

 

Ryan Dyck - Niagara Realtor

Honest & Professional Real Estate Service
Commercial & Residential Realtor
Call or Text: 905-246-4303
Email: rdyck23@gmail.com