While your mortgage itself will very likely be your largest expenditure, there are other costs associated with financing and legalizing a home purchase that can add thousands of dollars to your purchase price. These include
- Mortgage insurance.
- Appraisal fees.
- Legal or notary fees and conveyancing.
- Other closing costs and Property Transfer Tax*.
- Most REALTOR©s will strongly recommend you arrange for a property inspection before purchase – which costs additional money, but may end up saving you hundreds of thousands of dollars.
- Some properties may require land surveys.
- REALTOR©'s commission.
- GST on new construction.
* Property Transfer Tax is one percent of the first $200,000 of purchase price, plus two percent of the balance of purchase price.
Some fees and assessments are impacted by factors such as:
- whether you are a first time buyer
- if the property is a vacation home
- if it is purchased for investment
- the percentage you use for your down payment
Your REALTOR© will help you calculate the true cost of purchase for your chosen property, and make you aware of any discounts or waivers that may apply in your particular situation.