buying
Find Your Dream Home With Your Favorite Realtor
working with a buyer
A professional real estate broker plays a crucial role in assisting people looking to purchase a property. In Fact, they provide valuable advice and services to facilitate the process, including:
- Offering information on the pros and cons of different property options.
- Guiding buyers to locate properties within their desired area, price range, and specific criteria.
- Facilitating property visits and viewings.
- Ensuring transparency by disclosing all material facts about the properties shown.
- Collaborating with buyers to draft initial offers and purchase agreements.
- Advocating for buyers during negotiations with the seller’s agent.
- Managing the transaction process after the purchase contract is finalized.
- Clarifying and explaining transaction documents to buyers.
- Coordinating inspections, reports, and repair negotiations.
- Guiding buyers through the closing and possession procedures.
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cost related to the buying a property
Closing Cost as buyer
In Ontario, closing costs typically vary between 1.5% to 3% of the purchase price. For instance, if a property is priced at $500,000, closing costs could range from $7,500 to $20,000. In fact, these costs include Land Transfer Tax, Legal Fees, and other associated expenses, which must be paid alongside the down payment at the time of home purchase. So, it's important to recognize that closing costs differ across cities and provinces throughout Canada. Therefore, it's crucial to account for these additional expenses when budgeting for a property purchase, as they add to the overall financial outlay alongside moving expenses.
Land Transfer Tax
When you buy land or an interest in land in Ontario, you pay Ontario’s land transfer tax. Therefore, when you acquire land or a beneficial interest in land, you pay a land transfer tax to the province when the transaction closes. Well, land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.
Lawyer Fee
A lawyer or notary will charge a fee for their professional services involved in drafting the title deed, preparing the mortgage, and conducting the various searches. The disbursements, on the other hand, are out-of-pocket expenses incurred, such as registrations, searches, supplies, etc., plus HST.
Fire Insurance
All mortgage lenders will require a certificate of fire insurance to be in place from the time you take possession of the home. Well, the amount required is generally at least the amount of the mortgage or the replacement cost of the home. This cost can vary on the property size and extras being insured, as well as the insurance company and the municipality. The cost can vary anywhere from $250-$600 plus HST for most properties.
Appraisal Fee
The appraisal provides the lenders with a professional opinion of the market value of the property. In fact, this cost is normally the borrower’s responsibility and it ranges as low as $100 for a drive-by appraisal to as much as $200 for a full appraisal, and the average being $175, plus HST. Occasionally, the costs could be slightly higher for larger, custom-built homes, or homes in remote parts.
Home Inspection Fee
A professional inspection of the home, top to bottom, is for the benefit of the buyer, therefore, that’s who absorbs the cost. Well, a typical home inspection can cost anywhere from $350-$450 plus HST, but our opinion is that they are well worth the investment. Usually, new home buyers may not worry about it, but a definite must for buyers purchasing properties older than 5 years. Well, when hiring a home inspector, make sure the inspector has liability insurance, just in case a mistake is made.
Title Insurance Fee
Today, most lenders require title insurance to protect against losses in the event of a property ownership dispute. This is purchased through your lawyer/notary and costs $100 – $300.
Mortgage Application and Processing Fee
On a high-ratio insured mortgage (mortgages above 75% of the purchase price), the mortgage insurer (CMHC or GE Capital) charges a fee of $165-$185 for applying and processing the file, as well as appraising the property. Well, on new homes, this fee drops to $75. HST is in addition to this fee.
Closing Adjustments
An estimate should be made for closing adjustments for bills that the seller has prepaid such as property taxes, utility bills, and other charges. So, any bills after the closing date are the purchaser’s responsibility. Well, your lawyer/notary will let you know what they are exactly once the various searches have been completed.
H.S.T.
On the purchase of a newly constructed home, HST is payable, but make sure you know who pays this, you or the builder. Therefore, on the offer, the purchase price will say “Plus HST” or “HST Included”, and who gets the HST new home rebate. Well, a lot of builders have included this cost into the purchase price so that the buyer does not have to come up with that at closing. (As well, this tax is also charged on all professional fees).
Please note: The calculations provided for The “Mortgage“, “Affordability“, “CMHC Insurance“, and “Land Transfer Tax” are for estimation purposes only and should not be considered accurate representations of your potential payments. So, for a more precise calculation tailored to your specific financial situation, please contact us directly. We’re here to provide you with personalized assistance and ensure you get the most accurate information regarding your mortgage options.
