soh: Costs associated during the buying process

Costs

Besides knowing your mortgage expense, there are a few other expenses you should take into consideration when buying a home. The costs associated during the buying process are the beginning costs and closing costs which occurs when you obtain ownership title which is transferred to you. There are instances where these costs can be 1.5% to 7% of the total cost of your home. Below, you will find the associated costs in purchasing your home. Use this as a guide, actual figures may vary.

Appraisal fee: The cost of appraisal may not be included in your mortgage application. Check with the financial institution you are dealing with. If there is a charge, the typical cost rages from $250 and up.

CMHC Insurance: The cost for high-ratio mortgage insurance can range from .5% to 2.9% if your down payment is less than 25%.

General expenses (moving, upgrades, decorating, storage, etc.): For miscellaneous expenses that may occur, budget at least $1000.

GST (new construction): If all conditions are met, a 7% GST is payable on newly constructed properties with a home owners grant.

Home inspection fees: Average inspection cost is $350 and up for a condo and $600 and up for a single detached home.

Home Insurance: This cost can vary because it is dependent on the type of coverage and amount of contents to be insured.

Legal Fees: Depending on the type of services required, the cost for a notary or lawyer is approximately $750 and up.

Mortgage life insurance: Lending instituion may offer a separate optional coverage. These costs vary depending on the home buyer's criteria.

Property Tax: You will be informed by your lawyer/notary of the pro-rated property taxes due at time of completion for your property.

Property Transfer Tax: in British Columbia the Property Transfer Tax is 1% on the 1st $200,000 and 2% on the Balance. Note: There is an exemption for First Time Homebuyers if certain conditions are met.