COST ASSOCIATED WITH BUYING A HOME
Appraisal fee: Most often, mortgage lenders require a prospective home be appraised before a borrower offers on it, to ensure that the borrower doesn’t overpay for the home. The cost of an appraisal depends on the size of the home but ranges between $150 to $250.
Property survey: Some lenders also require a property survey. This is so they can identify boundaries, lot measurements and easements. If the seller doesn’t already have one, a property survey can cost as much as $2000
Mortgage loan insurance:Lenders usually require mortgage loan insurance for mortgages with a downpayment of less than 20%. Sometimes mortgage loan insurance can be added to your mortgage payment.
Home insurance: Lenders also require borrowers to have enough home insurance to cover the total value of the mortgage. Lawyers also need proof of this insurance for them to process the transaction.
Ranging from $150-$300 title insurance can provide coverage in case of issues with the property title.
Legal fees: Legal fees can range anywhere from $1,200 all the way to $2,500. Lawyers are required for taking care of the mortgage, title searches, title registration and adjustment costs.
Land transfer tax: Land transfer tax in Ontario works as such: The first $55,000 is taxed at 0.5%, $55,000 to $250,000 at 1%, $250,000 to $400,000 at 1.5% and over $400,000 is taxed at 2%
Home inspection: A home inspector will look at everything from the foundation all the way to the roof. Their report should go over any issues along with estimates on the costs to fix said issues. A typical home inspection can cost up to $600.
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