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QuestionsCategory: QuestionsWhat are all the costs of buying a home?
Anonymous asked 4 years ago

What are all the costs of buying a home?

Are there any other costs of buying a home other than a mortgage?

1 Answers
MortgageRates.ca Staff answered 4 years ago

Below is a small list of costs that are associated with buying a home:

  1. The first cost of buying a home is your down payment which is dependent on the mortgage you are securing. For a conventional mortgage you will need a 20% down payment and for a low down payment insured mortgage you will need a 5% down payment.
  2. You will require up to 2.5% of the purchase price for closing costs.
  3. It is highly recommended to have your home inspected by a professional building inspector. In order to do so you will need to pay an inspection fee which is typically a few hundred dollars.
  4. You will be responsible for paying the fees and disbursements for the lawyer or notary acting for you in the purchase of your home. Fees vary significantly for this service so it is always a good idea to shop around before choosing.
  5. Depending on where you live there are costs between the buyer and seller which can be any of the following: closing and adjustment costs, interest adjustment costs between buyer and seller and transfer tax.
  6. You will be responsible for property insurance which will need to be in place by the closing date.
  7. The cost of moving from your current home to your new home.
  8. Finally there are many purchases such as appliances, tools, furniture, etc that should be included in you initial costs.

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