Buying a home is likely going to be the largest purchase of your life, and the total cost goes beyond just the purchase price. Here’s what you can expect for costs associated with your purchase.
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LAND TRANSFER TAX | .5-2% of value
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When a home changes hands, many provinces and a few municipalities, charge a property transfer tax, or title transfer fee. It can add thousands to your purchase price. (First time home buyers qualify for rebates or exemptions in some provinces)
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APPRAISAL FEE | around $500
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Your lender may ask you to have a home appraised to confirm its market value. Fees vary depending on a property’s value and complexity… CLICK HERE TO CONTINUE READING
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LEGAL FEES | $500-$800
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A lawyer or notary will help protect your interest by reviewing your purchase agreement, searching the property titles, and ensuring that all documents are completed properly.
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HOME INSPECTION | $350-$450
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An inspection can help make you aware of issues related to a house’s structure and systems; such as plumbing electrical and recommended or necessary repairs.
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HOME/FIRE INSURANCE | $1000-$2000/year
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Your lender will require proof that the property is insured in case of fire and/or other damage. Insurance costs vary depending on the coverage needed.
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TITLE INSURANCE | $150-$750
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Title insurance can safeguard you against fraud and problems with your property title or survey.
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COSTS FOR NEWLY CONSTRUCTED HOMES
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If you’re buying a brand new home, be prepared to settle any items not quoted in the original price; including upgrades, paving or landscaping fees. New home are also subject to 5% GST or 13% HST, (although this is often included in your purchase price). A general rebate reduces the GST, or the federal part of the HST to about 3.5% for homes valued at $350,000 or less.
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PREPAID COSTS
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Is the seller has paid property taxes, water bills, or utilities in advance, you’ll need to reimburse these at closing. Although this can add hundreds to your up-front costs, these bills will be paid for your first months in your new home!
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TAX ON MORTGAGE INSURANCE
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If you have less than a 20% down payment, your lender will require that you obtain mortgage default insurance. You can roll the cost into your mortgage payments, although the PST is due at closing. For example if your mortgage insurance is $5,000 and the PST is 6%, you’ll pay $300.
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MOVING-IN COSTS | $500
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Before the big day, budget for all of those last minute things: $100 or more to rent a truck, or a few hundred for professional movers, $50 to $60 for cleaning supplies and a locksmith to rekey your locks.
FAQs
What costs should I budget for when buying a home besides the purchase price?
Plan for costs such as land transfer tax, legal fees, an appraisal, a home inspection, home insurance, and title insurance. You may also need to account for prepaid property taxes or utilities, mortgage insurance tax, and moving-in expenses.
How much does a home inspection and legal work usually cost?
The excerpt estimates a home inspection at approximately $350 to $450. Legal fees for a lawyer or notary are generally estimated at $500 to $800, depending on the transaction and the professional’s fees.
Do I have to pay land transfer tax when buying a home in Saskatchewan?
Property transfer taxes or title transfer fees are charged in many provinces and by some municipalities, and the amount can add thousands to the purchase price. First-time buyers may qualify for a rebate or exemption in some provinces, so confirm the current rules that apply to your Saskatchewan purchase.
What extra costs should I expect when buying a newly built home?
New construction may involve upgrades, paving, landscaping, or other items that were not included in the original price. New homes are also subject to 5% GST or 13% HST, although the tax is often included in the purchase price and some rebates may apply.
What closing costs apply if I have less than 20% for a down payment?
With less than a 20% down payment, your lender will require mortgage default insurance. The insurance premium can be added to your mortgage, but the provincial sales tax on that premium is due at closing, so it should be included in your upfront budget.
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