How Much Will It Cost to Buy a House?
Benefits of Home Ownership
- Long-term gains in real estate value
- Stability and pride of ownership
- Retirement planning asset
Initial and Ongoing Costs
- Home purchase costs
- Ongoing expenses (maintenance, taxes, insurance)
Key Costs to Consider
Deposit
- Paid when making an offer
- Ensures you don't lose the home to another buyer
- Part of your down payment upon purchase
Down Payment
- Minimum 5% for homes below $500,000
- 5% on the first $500,000 and 10% on the remaining amount for homes between $500,000 - $999,999
- Down payments below 20% require mortgage loan insurance
Land Transfer Tax
- Paid at closing to the province or territory
- Varies based on property price and location
- Not applicable in Alberta, Saskatchewan, and parts of Nova Scotia
- Toronto has an additional municipal land transfer tax
Appraisal Fee
- Ensures you are paying fair market value
- Costs $300 – $400
Home Inspection
- Recommended to avoid potential issues
- Costs around $500
Property/Home Insurance
- Required by lenders to cover the property's total cost
- Ensure you have adequate coverage
Mortgage Insurance
- Protects the lender if you default
- Required for down payments less than 20%
- Premiums range from 0.6% to 4.5%
Canada Mortgage and Housing Corporation (CMHC) Tools
- Calculators, online tools, and reports to assist homebuyers
Lawyer Fees
- Required for completing the purchase
- Prepares and reviews legal documents
- Fees vary
Title Insurance
- Protects against title-related losses
- One-time fee
Property Taxes
- Billed annually based on property value
- Essential to plan for this ongoing expense
Maintenance and Energy Costs
- Include lawn care, professional services, upgrades, and utilities
- Use energy calculators to estimate costs
Moving Expenses
- Moving truck rental or professional movers
- Moving supplies and insurance
- Utility installations
Land Survey
- Evaluates home boundaries
- Cost varies, expect at least $1000
Creating a Budget
- Determine if you can afford a home
- Review fixed and variable finances
- Use the 28% Rule: Mortgage should not exceed 28% of your gross income
- Save for a down payment
- Set up a dedicated savings account for property-related expenses
- Apply extra money to your home finances (down payment or mortgage)
Contact Fardad Farhanian Today
- Call or Text: (416) 707-1031
- Email: [email protected]
- WhatsApp: (416) 707-1031
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Looking for North York property? Call Fardad today!
