A house is a big purchase, and it takes a lot of planning and financial preparation. There are many costs, from down payments to repairs and purchasing appliances. However, many homebuyers are often hit with hidden fees that they have forgotten about.
In this article, we will take you through some additional costs and fees that may have slipped your mind. This way, you will be more prepared for your finances.
1. Property or Land Transfer Tax
Property taxes are often misunderstood because they are not always the same across Canadian provinces and territories. A property transfer tax is a tax you have to pay when purchasing property in Canada. Once paid, you may have to file a form to legally transfer the property or land to you. There may also be cases where you have to pay a provincial or municipal tax.
It is best to learn the property or land transfer taxes and laws in the state where you are purchasing your home. This way, you can set aside a portion of your budget.
2. Property Tax
Property taxes will be your responsibility as a homeowner. Every year, you will be required to pay this tax to your local or state government. As property tax varies from province to province or state to state, it is best to learn about its payment amounts. You may also want to consult with your lender about property taxes to determine if you can cover them within your monthly budget.
3. Home Insurance
Home insurance is a form of insurance that covers you and your property in case of any damages or accidents. It also protects your belongings and the cost of repairs and rebuilding or demolishing.
No matter where you live, you need to have home insurance. Make sure to check local regulations when it comes to the amount or limits of this coverage.
4. Home Inspection Fees
A home inspection is often required before you take possession of the home. It is done to ensure the house is in good condition. Both you and your real estate agent may hire a private home inspector. However, some real estate agents may include it as part of their service in the selling price. Discuss the fees with your agent to see if it is included or paid separately.
5. Legal Fees
In this day and age, buying a home is not just about the price of the house. Real estate lawyers will be part of the transaction, and you will need to pay for their service. Depending on your real estate agent and/or lawyer, legal fees could be charged separately and even by billable hours. Before hastily making decisions to hire someone, clarify the payment scheme with them to avoid unnecessary expenses.
6. Moving Expenses
Moving from your current residence to your new home is not free. As such, you need to budget for your moving expenses. This includes the cost of hiring help to move your items, driving costs, and overnight stay fees.
It is not just your residential items that you need to consider. Will you be moving your vehicles to your new home? Will you be moving your business supplies and equipment? The more you can plan, the better your moving expenses will be managed.
There are many costs when it comes to buying a new home. From the down payment to taxes and more, you need to have ample cash in your bank account to cover them. Make sure to take into account these costs mentioned above and not to forget them. This will help you create an adequate budget plan for your new home purchase.
If you need local real estate agents in the Greater Toronto area, you should contact Sold With Presta. We specialize in commercial and residential real estate, and we are ready to guide you with your purchase. Contact us to get started today