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Home Buyers
Closing Costs On the day of closing, buyers should be prepared to have extra money on hand to cover closing costs: • LAND TRANSFER COSTS
This is a provincial tax levied when title to land is transferred. It is payable by the Purchaser upon the registration of every transfer of land. (i.e. on closing day) The calculation of this tax on a single family home is as follows:
• HOME INSURANCE
Lenders will require that the home is protected against perils, such as fire, before the mortgage loan is advanced.• FEDERAL & PROVINCIAL TAXES
Typically, resale homes are exempt from GST. Taxes may be payable on the many services listed on this page. A new home is not exempt from GST and may be paid by the builder or buyer, depending on what is negotiated at the time of Purchase.• HOME INSPECTION
A professional home inspector may be employed by either the seller, prior to marketing the home for sale, or the buyer, prior to 'firming up' the offer. An inspection is done to ensure that no major deficiencies exist at the time of selling or buying. (Approx. $300.00 + GST)• MISCELLANEOUS
Remember the costs incurred with:
• LEGAL FEES
Paid by both Seller and Buyer:A lawyer will charge a fee for his/her service plus pass on to the client all costs that are incurred in the process. A partial list of these items is as follows:
• ADJUSTMENTS
The funds required to complete the transaction will include adjustments for prepaid expenses. For example, if a vendor had paid the property taxes for the entire year, the new purchaser would owe the vendor that prepayment. Other such adjustments are as follows:
• MOVING COSTS
If you are hiring a professional mover be sure to call for quotes well in advance. If you are relying on friends and family, consider:
A Pre-approved mortgage is a 'conditional' approval of your mortgage request. Your pre-approval should be a written contract signed by the lending institution describing the amount of the loan as well as the rate of interest you will be charged. In a volatile interest market, it is great to have a guaranteed rate. If the rates go up, you are guaranteed the rate on your pre-approval, if they go down, you receive the lowest rate at closing. Most banks will guarantee rates for 60 - 120 days. Important facts about pre-approved mortgage guarantees:
A Multiple offer is when there is more than one offer on a single home at one time. Often the term 'bidding war' comes to mind. We understand the prospect of having to blindly bid on a home can be a frightening prospect. In today's market, we are seeing a substantial increase in this phenomenom. "I tell my clients to pick the price of which they would like buy the home - or the price of which they are willing to walk away. Let's present it and see what happens" explains Glyn Yuhas. "All too often we see buyers back away from a multiple offer situation only to discover the home sold for less than they were willing to pay!" Myth: You cannot be pressured into paying more for a home than you want to. Take control and take a shot! Home Inspections A home inspection is traditionaly done after the home has been purchased. The purchase often has 2-3 days to hire a Qualified Home Inspector to go through the home in detail. The inspection takes from 2 -3 hours and includes a detailed analysis of the home's 5 major systems:
Cost of a home inspection is between $275 - $350, and is paid for by the purchaser. Under certain conditions and in some parts of the city, a urea formaldehyde foam inspection or a termite inspection may be important. Glyn offers valuable advice when dealing with these issues. 
Each office is independently owned and operated. The information contained herein, while believed to be accurate, is not warranted to be so. |
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