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Don’t let additional home buying costs take you by surprise

The cost of buying a home doesn’t begin and end with your mortgage. Here are 5 common home buying costs that you should also be aware of.

After scouring real estate listings and touring any number of potential homes, perhaps even losing a bidding war or two, you’ve finally done it –you’ve purchased your very first house. Congratulations! Buying your first home is an incredible accomplishment, especially in today’s market.

Once you’ve taken a moment to celebrate, your next steps should be to sit down and take an honest look at the extra costs that can line the road between congratulations and closing. Chances are, you already know about a few, but there could be some hidden home buying expenses that you’re not aware of.

Here are some extra home buying costs to note

Home Inspection

Even if the market in your area is particularly hot it is still a good idea to get a home inspection. This is especially true if you are purchasing a home that is ten or more years old. Structural issues, wiring and assessments of the roof and HVAC system (along with other things) can all be revealed during your inspection.

Land Transfer Tax

Anyone who buys property or land pays land transfer tax upon closing. The tax amount is typically based on the amount paid for the land along with the amount remaining on any mortgage or debt assumed as part of the sale agreement.

The good news here is that first-time homebuyers may be eligible for a refund on all or part of the land transfer tax. However, keep in mind that if you are purchasing a home in Toronto you may be subject to an additional municipal land transfer tax.

Title Insurance

Title insurance protects homeowners against losses as a result of survey irregularities, power of sale issues, property tax disputes relating to the previous owners, and other issues.

Note: This type of insurance is optional.

Legal Fees

You will require the services of a lawyer to handle some of the paperwork and to help you close the real estate transaction.


Additional Closing Costs

If the seller has prepaid costs such as property tax, condo fees or utilities you will be required to reimburse the amount coinciding with the period of time that you take over ownership.

Accessible, Reliable Financial Advice

Whether you’re a first time homebuyer or an existing homeowner, if you’re getting ready to purchase a home, you can receive expert mortgage and financial advice from your local advisor. Make an appointment to visit, or browse their website. They can tell you about an incredible range of products, resources and information all specially created to help you secure that dream home or investment property.

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