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.
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.
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.
You will need to reimburse the previous owner for any utility payments or property taxes that were paid for beyond the closing date.
Lawyers are required for the transaction paper work.
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 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)
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)
Your mortgage provider may sometimes require you to have the property you are purchasing appraised at your expense
Estoppel Certificate Fee
When purchasing a condo or strata unit, this certificate informs you of any unpaid contributions to the condominium corporation.
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.
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