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Buying

Costs

There are buying costs associated with purchasing your next home. It is good to be prepared for these, instead of being surprised and potentially compromising a deal. Plan on spending about 2% of your price on additional costs.

Always

Home Inspection

I highly recommend having a home inspection as a condition in your offer to purchase, even if it is a condominium. A home inspection provides you with a better understanding of the house’s existing condition; which may require repairs, improvements and/or upgrades.
Approximately $400-$600

Condominium Documents Review

Condominiums are considered a business, if you purchase a condo, you are buying into a condominium corporation. A full investigation of the corporation will reveal financial stability, by laws and your rights as an owner. A report can be provided through a professional condo document review company, or through your lawyer.
Approximately $300-500

Adjustment Costs

You will need to reimburse the previous owner for any utility payments or property taxes that were paid for beyond the closing date.
Approximately $300-$500

Legal Fees

Lawyers are required for the transaction paper work.
Approximately $500-$1000

Property Insurance

Your mortgage provider will more than likely require you to have insurance to cover the replacement value of your home and its contents.
Approximately $700-$1000 at closing, then annually

Moving Expenses

Moving expenses vary substantially from one situation to the other. It’s a good idea to figure out your specific moving expenses from renting a U-Haul to hiring a professional moving company.

Utility Service Charges

Be sure to check with your utility providers to find out what their relocation costs are.
($30-$50 per utility)

Sometimes

Mortgage Insurance

If you provide a down payment of less than 20% of your mortgage amount you will need to insure your mortgage. This can either be paid up front or added in to your mortgage.
Between (1.25-3.15% of your mortgage amount)

Property Appraisal

Your mortgage provider may sometimes require you to have the property you are purchasing appraised at your expense
Approximately $300-$500

Estoppel Certificate Fee

When purchasing a condo or strata unit, this certificate informs you of any unpaid contributions to the condominium corporation.
Approximately $200-500

New Home

Goods and Services Tax

When you purchase a new home, you must pay GST. This typically is included in the contract price, but in situations where the home is less than $450,000 and will be your primary residence, you may qualify for a partial rebate. I recommend consulting a real estate accountant for more information.
5% of purchase price

New Home Warranty

If you are building a new home in Alberta, this is mandatory.
$2000