10 Closing Costs when buying a home

Some additional fees you should consider when planning on the purchase of your first home. Some of them may be obvious, while some may not, but ensuring that you have allocated the necessary funds for expenses occurred during the buying process will keep everything moving smoothly.

The figures below are examples in the Canadian market. Of course these fees will vary depending on your location.

1. Land Transfer Tax – First time home buyers qualify for rebates or exemptions in some provinces.

2. Appraisal Fee – May be covered by lender , approx $400 .

3. Legal Fees. $500- $800

4. Home Inspection – $350-$450

5. Home/Fire Insurance- budget for approx $500 yr

6. Costs for newly constructed homes.

7. Prepaid costs- property taxes/water bills/oil adjustments.

8. Tax on mortgage insurance- if you have less than 20% down your lender will require that you have mortgage default insurance. You can roll this into your mortgage or pay separate.

9. Title Insurance- $150- $350

10. Moving costs- $100-$500 ( incidentals can easily add up!)

You should usually set aside approximately 1.5 % of the purchase price for closing costs .

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