Know Your Closing Costs
Closing costs are something consumers often do not consider when purchasing a home, which is why it is imperative to have a Mortgage professional working for you! When purchasing a home, or even refinancing your mortgage, we have to consider ALL costs that will be incurred. Closing costs cannot be added to your mortgage.
Below, I have listed common closing costs to prepare for, on top of your down payment.
Property Transfer Tax: 1% on the first $200,000, 2% on the remaining balance, and 3% on any balance above $2,000,000
This will be your largest closing costs. Although there are a few exemptions with property transfer tax, more often than not, this is a cost to prepare for when purchasing a home.
Inspection: Est. $500-$700
Inspections are a vital part of buying a home. After your offer is accepted, you have the opportunity to hire an inspector to ensure the property is in good marketable condition and there are no surprises you should be aware of.
Appraisal: As part of my practice, I cover all the appraisal costs for my clients. This is a value of up to $500.
An appraisal is done to ensure you a purchasing the property at the current value.
Legal fees: $1500 - $3000
Legal fees are paid at completion to have a lawyer or notary register the mortgage on the title of the property.
Have questions on your closing costs? Book an initial consultation to discuss your plans and goals.