Additional Costs To Consider
A mortgage helps you buy your home, but there are many additional costs that you need to consider. Some costs you will pay at the start of the home-buying process. Other charges, known as closing costs or disbursements, are related to your final purchase. Then there are general expenses such as moving expenses and home decorating costs. Make sure you budget for these additional costs.
As your Buyers Agent, I will assist you in estimating what these costs will be as they apply to your purchase.
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What it is |
Why it is needed |
Estimated Cost |
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Mortgage Application Fee |
To cover the cost of associated with processing your mortgage application |
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Appraisal Fee |
To ensure that the value of the home supports the amount of the mortgage |
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Inspection Cost |
To evaluate the structural and mechanical condition of the property and identify problems before you purchase the home |
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Property Survey Cost |
To verify the property's boundaries, measurements and structures and identify any easements, rights-of-way, or encroachments on your property or adjacent properties. An alternative to consider in lieu of a survey is title insurance. |
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Insurance Costs for Low Down Payment Mortgages |
To insure the low down payment mortgage, enabling you to buy with as little as a 5% down payment. This amount varies depending on the size of your down payment and can be added to the mortgage amount. |
0.50% - 3.75% of the mortgage amount |
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To insure the home and its contents |
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In British Columbia, 1% of the first $200,000 plus 2% of the balance. Click Here to visit the BC Property Transfer Tax Info Page |
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Interest Adjustment |
To cover any gap between the closing date of the purchase and the first payment date of the mortgage |
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To reimburse the person selling the home for any prepaid property taxes or utility bills |
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Legal Fees and Disbursements |
To cover the lawyer's or notary in fees and legal transactions relating to the purchase and mortgage |
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Good and Services and Sales Taxes (if applicable) |
Payable on New Homes. 4.48% on principal residence less than $350,000. 7% for Investment properties and purchases over $450,000 - CLICK HERE for Government of Canada Guidlines |
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Real Estate Agent Fees |
This is usually included in the purchase price of the home - but some exceptions can occur |
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To hire movers or rent a van |
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To hook up utilities such as electricity, gas, telephone service |
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Immediate Repairs |
These repairs may have been identified in the home inspector's report and can be added to the mortgage amount. |
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Appliances |
In case they are not included in the purchase |
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Decorating |
For changes you want to make as soon as you move in |
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Estimated Additional Costs |