If you're shopping for a new home, you're probably aware that there will be
some costs over and above the purchase price. It makes sense to budget
for these costs so you're not surprised – and unprepared – when you get
Most of these costs fall into a category that the real estate industry calls
"closing costs." The most common types include land transfer tax, lawyer’s
fees and disbursements, adjustments for prepayment of taxes and utilities,
property insurance, and HST/GST for newly-built homes.
You should also consider other expenses you will incur, such as home
insurance and moving expenses.
Of course, if your new home is a condominium, you’ll also have to account
for the monthly condo fees.
Closing costs can vary depending on the type and location of your new
As a good rule of thumb, you should always have 1.5% of the purchase
price for closing costs. Therefore if your purchase is for $200,000, ensure that
you have an extra $3000 to cover your closing costs.
A good REALTOR® can help you determine the costs you will incur.
This is where I come in! Don't fret, I have your back and will always inform
you of all costs you need to know to avoid the unwanted 'surprises'!