Cost of Purchasing a Property -LandmarkRealties
Did you know that when you buy a property, you must have money set aside to cover start-up costs? Such as:
• Your down-payment
• Property inspection costs
• 1.5% of the property closing costs
After your property purchase transaction, additional savings set aside may help unforeseen expenses.
These expenses should not be taken lightly and all mortgage lenders will even check that you have these funds available before granting you a loan. Mortgage loans are calculated based on the value of your property and, therefore, cannot be used to pay these additional costs.
How much savings do you need?
It's important to know how much money you need in savings before you can consider purchasing a property. Here is a list of common start-up costs:
• Property Inspection
• Property Evaluation (Appraisal) *Subject to lender's condition*
• Provincial tax (9%) on the Mortgage Insurance premium
• Notary fees
• Adjustment costs determined by the notary (Heating, Municipal & School
•Taxes, Equipment rental contract, etc.)
• Property Transfer Tax (Welcome Tax)
• Moving expenses