So you are looking to purchase your next home or your first, and you have NO IDEA how much money you will need! We get this question ALL the time. So here is everything you need to know:
- Down payment: Start by obtaining a pre-approval from your lender. This is the FIRST step to make sure you actually qualify for the home price you are looking in. This is THE most important thing because your lender assists in determining the best product for your needs. Although there is typically no initial cost to this, you still need to make sure you have met with someone and provided all necessary documents and determine the amount of down payment that is required for your home. Most lenders will require that you have 1.5- 2% of your purchase price set aside and to be able to provide proof.
- Deposit- this is the amount of money required to have on hand when submitting an offer and can be deducted from the Down payment.
- Inspections: This varies for each type of property because in the country you will need to consider a well and septic inspection, if applicable, in addition to the building inspection. If issues are evident you may need to obtain a quote from a qualified contractor and some companies will charge for giving a quote.
- Lawyer’s Fees/ Closing Costs- will range depending on disbursements and the amount cost of Title Insurance included with is a percentage of the purchase price. Please discuss with your Lawyer for exact figures and remember that HST is applicable.
- Realtor Fees- typically the Fees paid to The Buyers Representative is paid by the Sellers as part of the commission paid to the Listing Brokerage and is not an additional cost to the Buyer. There may be specific exceptions so please consult with your Realtor on this.
- HST- there may be circumstances when HST is not included in the purchase price of your home, or land and this is something you will need to discuss with your Realtor before making an offer.
- Mortgage Insurance. Depending on the amount of down payment you have, you may be required, to purchase Mortgage Insurance. This is rolled into your mortgage amount but will be applicable to HST which you will be required to pay. For more information on mortgage insurance, you can go here or here.
Most people are aware of these costs, and not all of them apply in every purchase scenario so it is important to have all of the information before moving forward so you can be best prepared. If you have any questions about the Buying or Selling process, we are here to help! You can find out more about us here or send us an email to set-up a time to chat.