Hidden Costs Of Buying A Home

Posted by Nutan Brown on Friday, October 2nd, 2020 at 8:33am.

When buying a home, there are several hidden costs that are often overlooked. Since this will likely be the biggest transaction of your life, it is important to know exactly how much money you need to make the purchase.

Here’s a list of additional costs associated with buying a home that you may not know:

 

 

Moving Costs

The cost of moving can vary depending on if you hire movers, do it yourself, rent a truck, buy boxes, etc. Hiring a moving company will cost more, but will make the transition a lot smoother. You can have them pack and move everything or just move your belongings. Be sure to get estimates from a variety of moving companies to help lower costs.

 

Home Inspection

A home inspection is used to uncover any issues with the property. They’ll check the windows, walls, floors, plumbing, electrical, heating & air conditioning, ceilings, and other parts inside and outside of the home to make sure it's in good condition. Although in tight markets like Toronto, bidders often forgo home inspections to remain competitive.

RELATED: Should You Have A Home Inspection?

 

Land Transfer Tax

Land transfer tax is charged by the government when you buy a property. It is based on a percentage of the home’s purchase price, and sometimes other factors. Taxes vary by province, and first-time home buyers can sometimes get a rebate for part of the cost.

 

Legal Fees

When purchasing a home, you will want to have a lawyer review the terms of the offer to make sure you aren’t getting a bad deal. Once you sign the offer, you’ll also need a lawyer to handle the paperwork and file your transaction. This includes conducting a title search, registering your new place in your name, and making sure the downpayment and land transfer tax go to the correct offices on time.

 

Other Costs

Some other costs of moving may include buying new appliances, renovations or repairs, services setup fees, condo fees, landscaping, and snow clearing equipment. Each situation is different, so be sure to ask your realtor what other costs may apply to you.

 

 

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