We’ve talked before about the difference between a deposit and a down payment, but those who are in the market to buy a home in Oakville, Milton, Mississauga or Burlington also need to be prepared to handle the many other costs that can come with buying a home. Working with an experienced Oakville realtor can set you up for a smooth buying experience and help you understand what costs may pop up and when. Potential costs when buying a home should be carefully considered ahead of time in order to avoid financial difficulty in the future.
Since buying a home in Oakville or the GTA will have a large impact on your bank account, we’ve laid out potential costs that may also be associated with your purchase. Take the time to explore the costs and do your homework so that you’re well aware of how much funding you will need to add to the purchase price of your home, based on the market you’re in.
Have You Added These Home Buying Costs Into Your Budget?
As mentioned above, you will need to be prepared to have both a deposit and a down payment. You will need to put down a deposit as a security measure to ensure you don’t lose the house to another interested buyer. The amount of your deposit will become part of your down payment once you have purchased the home. A down payment is required to be at least five percent of the sale price, however, a 20% down payment will help you avoid paying mortgage loan insurance.
Other costs you need to be prepared for include:
- Land transfer tax. The cost will vary depending on your municipality, the size of the land and other factors. First time home buyers may be eligible for a rebate on land transfer tax up to $4,000.
- Appraisal fee. An appraisal will typically cost between $200 and $350.
- Home inspection. A home inspection should be considered a necessary step in your home buying process and will normally cost an average of $350 depending on the size, age, and condition of the home.
- Property insurance. You may already have property insurance for the home you are currently living in, but it’s important to do your research and find a reasonable quote for your new property, as the cost may increase significantly depending on the difference in property type.
- Mortgage insurance. You can get mortgage life insurance, which would pay the mortgage in the event that anything was to happen to you or your partner. There is also mortgage loan insurance if your down payment is less than 20% of the total house cost.
- Legal fees. Ensure your lawyer’s quote includes all related expenses related to closing. Legal costs can range depending on the complexity of the transaction.
- Moving costs. Whether you decide to move yourself or higher professional movers, be prepared to cover your moving costs. Even renting a truck for a few days and feeding friends and family is still an expense that shouldn’t take you by surprise.
- Miscellaneous costs. As with any major change, there will be additional costs that you didn’t plan on. When creating your moving budget, it’s a good idea to allocated $500 - $2,000 for miscellaneous costs.
Let Sue Heddle Homes Help You Buy Your Next Home
Buying a home can be such an exciting time, especially when you have the right realtor on your side. Sue Heddle Homes has more than a decade of experience helping clients find their next home and making the process stress free and transparent. If you’re ready to move forward with your real estate needs, call Sue Heddle at (416)-906-7998. Recognized as a top realtor in Oakville, Halton and the surrounding regions, Sue Heddle Homes has what it takes to help you find the right house for your needs.