BUY a Home

What are the buyers costs?

Closing costs are a list of charges your lawyer presents to you on the closing date of your home. Many people are surprised at the additional costs over and above the price of the home. According to the CMHC and Genworth Financial you should have at least 1.5% of the purchase price for closing costs in addition to the down payment (have around 2.5% to be on the safe side). The costs vary among provinces and cities. Use this as a guideline then talk with your lawyer who can provide a more realistic estimate for your situation.

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Home Inspection Fee (Resale Homes)

A professional inspection of the home, top to bottom, is for the benefit of the buyer. A home inspection can cost anywhere from $300 - $500 and is well worth the investment. When hiring a home inspector make sure the inspector has liability insurance just in case they overlook something.

Land Survey Fee or Title Insurance Fee

A recent survey of the property is usually required by lenders. If one is not available the cost can range between $600 - $900 for a new survey. In lieu of the survey most lenders today will accept title insurance which can cost considerably less.

Legal Costs and Disbursements

Lawyers and notaries charge fees for their services involved in drafting the title deed, preparing the mortgage, and conducting the various searches.

Disbursements are out-of-pocket expenses incurred during the process such as registrations, searches, and supplies.

Land Transfer Tax

Most provinces charge a land transfer tax payable by the purchaser. The amount varies depending on the province. Land transfer tax is based on the purchase price. First time home buyers purchasing a new or re-sale home may be entitled to a refund.

HST

HST is payable on the purchase of a newly constructed homes not resale homes.  If you are purchasing a new home make sure you know who pays this, you or the builder. On the offer the purchase price will say "Plus HST" or "HST Included" and who gets any HST rebates. Many builders have included this cost into the purchase price so the buyer does not have to come up with it at closing.

Closing Adjustments

An estimate should be made for closing adjustments for bills the seller has prepaid such as property taxes, utility bills, and other charges. Any bills after the closing date are the responsibility of the purchaser. A lawyer will let you know what they are once the various searches have been completed. This often refered to as a balance of adjustments.

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residential MLS
Why sign a Buyer Representation Agreement?
(or BRA)

Consider its benefits-  A BRA defines the relationship between the buyer (you), and the Royal LePage Brokerage you are working with. It sets out the property type and geograhic location for your potential new home, lists the services to be provided, addresses the issue of commission and specifies the duration of the agreement.

Signing a BRA documents the terms and obligations of the brokerage-client relationship.  The brokerage has a special responsibility to you, called fiduciary duty, to follow your instructions, protect your confidential information and promote and protect your best interests. 

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Price it to sell.  Present it to sell.

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