Home buyers should be aware that when they are purchasing a home there are additional costs on top of the purchase price. Here are a few examples:
1) Property Purchase Tax:
As a first time home buyer, you are eligible for full exemption of Property Transfer Tax provided your purchase price is $425,000 or less. With a purchase price of $425,000 to $450,000, the Property Transfer Tax is applied according to a sliding scale.
If you are not eligible for the first time home buyer exemption, you will be required to pay tax as follows: 1% of the first $200,000 plus 2% of the remaining amount. For example, if you purchased a home for $380,000, you would pay $2000 (1%) tax on the first $200,000 and an additional $3600 (2%) tax on the remaining amount of $180,000. Thus your total Property Purchase Tax would be $5600.
2) Home Inspection: Approximately $500
3) Interest Adjustment: The interest you pay for receiving your mortgage funds early.
4) Property Tax Adjustment: Property taxes for the calendar year are paid on July 1st. If a property is purchased before July 1st, the seller will owe the buyer a credit at completion. If a property is purchased after July 1st, the buyer will credit the seller at completion for the days he owns the property up to and including December 31st.
5) Legal Fees: They can range approximately from $700 - $1200.
6) Property Title Insurance: Approximately $200 or more. This insurance provides security and peace of mind in matters regarding title. It may eliminate the need for land/site survey.
*It should be noted that these figures are only examples and do not include taxes. Individual cases will vary.
Jantzi Cox Marketing Group