There are a number of associated costs that a homebuyers potentially incur, especially when you purchase your first home. Some of the expenses related to buying a home are 'one-time fees', while others are continuing.
Initially, your largest cost outlay is your down payment. Typically, a down payment with be approximately 5% of the agreed to purchase price. However, there are some of the additional costs that you should be aware of and be prepared for such as:
- Legal Fees & Disbursements
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Property Land & Transfer Tax (PTT) - 1% on the first $200,000 2% on any remaining balance *First Time Buyers are exempt from this tax on purchases upto $ 425,000. Above that figure, the full amount is applicable.
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HST - Harmonized Sales Tax (Combines the 7% Provincial Sales Tax (PST) with the Federal 5% GST into one 12% harmonized sales tax (HST) effective as of July 1, 2010. As a rule of thumb, the GST rules that did apply to residential property will also be applicable under the HST. Note: HST is applicable to NEW HOME SALES, but DOES NOT apply to re-sale homes. You may be eligable for a provincial New Housing Rebate IF your purchase is your primary residence. Buyers of new homes will be eligable for a rebate of 71.43% of the provincial portion (7% of the HST's 12%) of the HST paid on new homes upto a maximum rebate of $26,250. Home prices at more than $525,000 will be eligable for a flat rebate of $26,250. Before purchasing a New Home, I would urge you to consult with your accountant for a complete understanding of your obligations.
- Adjustments (reimbursed to the vendor)
- Interest
- Property Taxes
- Utility Payments
- Strata or Condominium Fees
- Move in/out fees
- Estoppel certificate fee
- Survey Fee
- Home Inspection fee
- Appraisal fee
- Mortgage Loan Insurance (High Ratio CMHC)
- Moving expenses
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Property or Condominium Insurance
Questions? Call Trevor
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