Home Buyer Costs
When you buy a home, you aren’t just paying the listing price. There are a variety of smaller costs associated with buying a home in Ottawa!
So let’s get into it: what are ‘closing costs?’
Closing costs are different costs that come with a house purchase. As you set up mortgaging for your home, there will be more costs associated with finalizing it. This includes legal fees, anything administrative, and everything in between.
On average, you can expect closing costs to be about 3-5% of the cost of your new property. That being said, you should always budget for a little bit more, because things can always change!
We have compiled a list of some of the common fees you will have to pay during closing:
HST/GST - The most expected fee, is tax. You will only be charged this if your home is new, and even still, you may be eligible for a rebate.
Legal Fees - This is the most common charge. Your lawyer will charge you for the cost of creating a mortgage and any other legal processes they assisted you with.
Interest - You will be responsible for paying the interest that may have accumulated between your closing date and first mortgage payment.
Statement of Adjustments - This will be whatever you owe on utilities, taxes, and other bills between your closing date and the end of the monthly payment cycle.
Home Inspection - You do not have to get one of these, but having an inspection on your new home will be valuable in ensuring that your home is safe and well updated. These costs are a worthwhile investment.
Title insurance - This insurance cost would be asked for by your lender in case of a property ownership dispute.
Land Transfer Tax - This is the most significant fee you will be paying. When you purchase a new home, you pay this tax based on the value of your home. It can be provincial or municipal. First-time home buyers may be eligible for a rebate.
Appraisal Fee - The cost of the estimate of your home, most often requested by your lender.
When you work with one of our real estate agents at New Purveyors, we will assist you in figuring out a good estimate of your closing costs. This way, you can choose a home within your actual budget (the one that includes closing costs) rather than going over by choosing a home within your perceived budget (without closing costs!).
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