There are several costs associated with purchasing a home, below I break down some of the costs.
Down Payment – Minimum down payment is 5%. You are required to provide 3 months banking history to show that you have the down payment funds available.
Closing Costs – These are fees incurred and paid at your Lawyer’s office. The Lender requires you to show that you have 1.5% of the purchase price available in savings.
Insurer Fees – These are paid if your down payment is less than 20%. Most people know these as CMHC fees, in Canada we actually have three different insurer providers. This fee will cost you anywhere from 2.8%-4% of the total mortgage amount depending on your down payment. Saskatchewan is one of a few provinces that charges 6% PST on the insurer fee, this is also paid at the Lawyer’s office.
Home Inspection – Buyers are encouraged to make a conditional offer on a home based on the outcome of an independent home inspection. The approximate cost $300-$500.
Property Taxes – If the current homeowners paid their taxes annually you may owe them back taxes for the months that they paid for but will not be living in the house. This will depend on how the current home owner pays their property taxes.
House Insurance - Homeowners must have fire insurance on his or her new property effective when they take possession. You will need to show proof of house insurance at the Lawyers office.
House hold Utilities – Along with the monthly bill there could be additional initial hook up fees associated with your Internet, Power, Energy, Water.
There may be some other cost incurred when buying a home, feel free to contact me to discuss.