When you’re looking to buy one of the new homes for sale in Brossard or in other cities in Canada, you may focus only on the asking price for the property. This is actually a very common tendency among buyers. But then it may come as a rude shock to you that the money you’ll actually shell out will be a lot more than what you thought at first. This can be rather discomfiting, especially when you just have enough money in your bank account for your down payment for the home.
Here are the expenses you may have to factor in:
- Mortgage fees. It’s not enough that you pay interest on the mortgage loan you get to help pay for the house you want. You may have to pay $1,500 for arranging the mortgage, and this may be non-refundable if the negotiation for the house fails. There may also be an appraisal fee to assess the value of the house. Often times,the lender covers this fee; you may have to cover it instead. That’ll set you back $250 to $500.
- Transfer tax.Sometimes called the “welcome tax”, this can go as high as 2% of the value of the home, though in Quebec it’s normally about 1%. If you buy a house in Toronto, you may also add another municipal tax as well.
- Inspection fees. This can cost anywhere from $400 to $700. The price will depend on the experience of the inspector and the size of the house you’re buying. You may want to splurge on getting one who’s really experienced, so that you can really understand any potential issues that may become problems with the house.
- Notary fees. Buying a house is a legal transaction, so you need to pay for the preparation and verification of various documents such as the property title and the deed of sale. These fees will total to a price between $900 and $1,500.
- Insurance.You’ll need to buy insurance for your home, so you’re protected from fires and other calamities. If you buy a home and you can’t cover 20% of the price of the house as down payment, you have to pay for mortgage insurance. For condo unit buyers, you also need to add payments for a percentage of the insurance needed by the condominium corporation.
- Property tax. This will depend on the neighborhood and the value of the property. If the home seller has already paid for the taxes, then you may have to reimburse part of it.
- Relocation costs. This will add at least another $150 to the total cost, if you’re moving to another part of the city you’re already in. If you’re moving to another city, you can expect much larger expenses, especially for cross-country relocation.
- Furnishings. You may have to buy new furniture and appliances, and that can cost a pretty bundle. Bed frames, couches, and dining tables can cost a lot, as well as modern appliances for entertainment and for the kitchen.
- Utilities. This means electricity, water, Internet, and TV cable. Even if the new home already has these things, transferring them to your name will cost you.
- Repairs. Hopefully you had an experienced pro do the home inspection, so that you have a pretty clear idea of the things you have to fix. But then it’s always possible to encounter an unpleasant surprise when something unexpected goes wrong.
The new homes for sale in Brossard and other cities may have an attractive price you can afford, but just keep in mind that this price isn’t the sum total of your final bill. Be ready, and plan for the hidden costs as much as you can!