The final step in buying your home may have unexpected costs
You got your mortgage, and you made your down payment. So all you have to do is move in? A moment! There are still various “closing costs” that you will have to settle before taking possession of your home. Know what it is, to avoid unpleasant surprises. You can visit https://ambermelenudo.com/ in this matter.
Legal Fees – The formalities of buying your home and transferring the property can cost you thousands of dollars in legal fees. You cannot escape, but you may be grateful for help from your lawyer or notary. Discuss with him or her the terms of the purchase, to make sure your interests are protected. You can “shop around” to find a counsellor according to your budget.
Inspection Fees– you are buying an existing home; it is a good idea to call a home inspector before closing. It will cost you a few dollars, but the examiner will notify you about the true state of the house, written report in support. You may be able to get the vendor to perform repairs recommended by the inspector and ultimately save money. Inspection is not mandatory, and may not be necessary for a new home.
Assessment Fees– Your lender may ask you to obtain a valid assessment before confirming your mortgage. It will usually cost you a few hundred dollars, and the result could be as good as the price you paid for the house.
Land Transfer Tax – This fee depends on where you live. Some provinces and municipalities require land transfer tax or transfer taxes at the time of transfer of the property. The amount is based on the price at which you buy the house, and it varies widely, but it can amount to a few thousand dollars. The first-time home buyer is sometimes exempt from this tax.
GST / HST – You may also have to pay sales tax if you buy a new home. The GST or HST usually applies to new homes, but not to resale ones. Part of the tax is sometimes refundable. If you buy a new (or substantially renovated) home, you may qualify for a tax rebate under the federal GST / HST New Housing Rebate Program.
Mortgage Insurance – If you buy a home with a down payment of less than 20%, your lender will likely pay you a “mortgage loan insurance” premium. This amount will be added to your mortgage and will increase your monthly payments. Wondering how much it will cost you? Mortgage Architects give you the answer here.
Life insurance for mortgage – insurance protects your family members after your death (or in case you have a long-term disability). If so, this insurance pays all or part of your mortgage balance. This is an optional benefit, the premium of which is often included in your monthly mortgage payment. It’s the price of greater peace of mind. Do you have more questions about closing costs and how they affect your mortgage? Contact a broker today.