Home2Own

Typical Expenses

Homebuyers incur many costs, especially when purchasing their first home. Some of the expenses related to buying a home are one-time costs, while others are continuing costs.

Typically, the largest cost at the beginning is your down payment. As a first time buyer, this will likely represent only 5-10% of the purchase price. However, you should be prepared to pay some additional costs:

Lawyer/ Notary Public fees:
Even a straightforward home purchase requires a lawyer to review the Offer to Purchase, search the title, draw up mortgage documents and tend to the closing details. Lawyer?s fees for a mortgage range widely, depending on the complexity of the deal, but will probably be at least $1000.00.
GST
The 6% GST applies to new housing. However, there is a rebate, to a maximum of 2.5 %, if your home costs less than $450,000. There is no GST on resale housing unless the home has been substantially renovated.
Property or Land Transfer Tax
Property transfer tax must be paid in order to have a property transferred to a new owner and is payable by the transferee of the property (purchaser). The tax is computed at 1% on the value up to $200,000 and 2% on the remaining value. This tax is waived for first time home buyers who have not owned an interest in principal residence anywhere and who meet other requirements.
Prepaid Taxes or Utility Bills
You will have to reimburse the vendor on a prorated basis if some bills have been prepaid beyond the closing date.
Mortgage Broker's Fee:
A broker may charge a fee to find you a lender.
Mortgage Loan Insurance Premium
This is applicable only if you have paid 5% down.
Mortgage Loan Insurance Application Fee
This is applicable only if you have paid 5% down
Appraisal Fee:
If your loan is not insured, your lender may require a property appraisal at your expense. A basic appraisal for mortgage purposes will probably cost between $150-$250 , though it might vary with location and complexity.
Survey Fee:
Your lender will require an up-to-date survey. Ask the vendor to provide one as a condition of your Offer to Purchase. Otherwise, you will have to pay to have one done.
Property/Condominium Insurance:
This insurance covers the replacement value of the structure of your home and its contents. Your lender will insist on this because your home is the security for your mortgage.
Estoppel Certificate:
This certificate outlines a condominium corporation?s financial and legal state. The certificate and supporting documents will cost you approximately $50.00.
Moving costs:
Most professional moving companies will charge between $50 - $100 per hour.
Home Inspection Fee:
Inspectors are unregulated in many provinces, so fees range from about $200 - $500 for a home priced under $400,000. Larger, more expensive homes cost more to inspect. A two-hour inspection carried out by an engineer who provides a written report will cost closer to the upper limit.
Water Quantity and Quality Certification:
If you buy a home with well service, you will have to pay a fee from $50-$100 to certify the quantity and quality of the water.

Additionally, once you have purchased your home, you will incur regular expenses on a monthly, quarterly or yearly basis. Some of these costs include:

1) Mortgage Payments
2) Water and/or Sewer Payments
3) Electricity and Gas Services
4) Cable and Telephone Services
5) Property Taxes
6) Strata or Condo Fees
7) Repair/Maintenance Expenses
8) Homeowner?s Insurance

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Typical Expenses

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