COSTS INVOLVED IN BUYING
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APPLICATION
Some mortgage lenders charge a fee to process your application. Ask if it can be waived.
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APPRAISAL
Your mortgage lender may need to have your new home appraised by a professional and they often pass the bill onto you. Sometimes your lender will also waive this fee.
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MORTGAGE BROKERS
Your mortgage broker may charge a fee that’s payable on your closing date. Ask your broker to avoid surprises.
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LAND SURVEY
Lenders may require a survey of your property. Get your lawyer on the case.
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HOME INSPECTION
A home inspection is essential. This is money well spent.
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HOME INSURANCE
Mortgage lenders require you to carry fire and extended-coverage insurance.
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TITLE INSURANCE
It is not mandatory, but title insurance protects you from fraud and potential errors surrounding the title to your land. Ask your lawyer for details.
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LEGAL
You will pay your lawyer for their invaluable time and “disbursements”, which are the costs involved in title searches, drawing up the title deed, and preparing your mortgage.
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ADJUSTMENTS
The previous owner may have paid property tax or utilities in advance and they want to be credited for those payments. Ask your Realtor and lawyer what might come up on the closing date.
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MAINTENANCE AND UTILITY
Remember, you will now have more regular monthly payments in the form of property tax and utilities.
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PROPERTY LAND TRANSFER TAX
The amount of this tax varies from province to province. Properties in Toronto attract Municipal Land Transfer Tax, as well as Provincial Land Transfer Tax.