Tips on the Cost Incurred When Buying a Home
Home buying is a very expensive process that can drain all your savings. The closing cost is what make this process to be expensive because many people are not prepared about it. These many costs to be paid after you have done everything can make you broke after buying the home. This page will prepare you with the cost that you will incur when buying a home.
What is closing costs. The expenses incurred after buying the home are the ones referred to as the closing costs which includes the land transfer costs, broker fee, legal fee and also the title fee among many other fees. In case you want to know the amount that you are likely to spend with these closing costs then you should not shift to anywhere else.
The fee charged for the land transfer. The fee charged for land transfer depends on the province you are dealing with and it’s expected to be a percentage of the home buying cost. Some provinces exclude the individual that are buying for the first time from paying the land transfer fee.
Legal fee. The legal fee is given to the attorney that was in charge of all the documents and guiding you through. The amount spent in this care differs but although it’s advisable to engage real estate lawyer when buying a home, there are still some people that ignore it to save on the cost.
Then, let’s look at the PST on CMHC insurance. This happens in case you didn’t have enough money to pay for the down payment of the house. The PST on CMHC insurance fees is given to the company for protecting loan provider when acquiring a loan. You don’t have to worry about the amount you will have to pay since it can be spread throughout the loan period but you will have to pay a certain amount to the PST on CMHC insurance for tax.
The other closing fee to consider. There are some other costs involved with buying a home although they are not common to all.
The septic. After you have done everything else about the home it’s now time to inspect the septic tank with a professional. From that you can now purchase it from the previous owner.
The amount spent on the water. Also, you need to make sure that you have checked the condition of the well and the quality of the water before you place an order to purchase it from the homeowner.
What else to pay after closing day. There are still other costs to be paid even when you think you are done with payments.
The property insurance and property tax are other extra cots after closing day. The location of the house determines the monthly contribution for tax. The property insurance payment offers protection against any theft or damage of the home.