Cost of Buying a Home, Plan your Budget Wisely
There are many costs associated with buying your first home or your dream home. There are upfront costs and ongoing costs that you need to consider when planning your home-buying budget.
Upfront costs may include:
– Down Payment – This needs to be ready at time of purchase and its source to be verifiable by the bank.
– Initial and Additional Deposits – This is part of your down payment and has to be accessible when you’re placing an offer on a property.
– Home Inspection – Costs of a home inspection runs from $350 to $550 on average, but it can go up to $1500 for larger homes, acreages, and specialty houses.
– Condominium document reviews – When buying condo, having an independent professional to review your documents is really important. Costs vary from $350 to $550.
– Appraisal fees – This cost may be paid by the lender or bank, but in some cases you have to pay the cost again. Costs are between $250 and $550 and up for specialty homes.
– Mortgage Insurance fees – CMHC & Genworth fees are for mortgages with downpayments less 20%. This fee is added to your mortgage. You broker will advise you on the amount.
– Legal fees and disbursement – Legal fees vary from $1,200 to $1,500 and more. Fees are based on the price of the home and the size of your mortgage.
– Moving Costs – This is a hard one to estimate. It can range from a few hundred dollars by just renting a U-Haul to a few thousands by hiring professional movers.
Ongoing costs may include:
– Your Mortgage Payments – This can be in monthly, bi-weekly or weekly terms. The more frequent your payment is, the faster you are paying off your mortgage.
– Home insurance – Home insurance is based on the size of the house and several other factors.
Other regular fees include Property Taxes, Condo Fees, Utilities, Repairs and Maintenance.
