Buying a home is the most expensive undertaking a first-time buyer will face. With listing prices, down payments and offers, purchasing a home will require an increased look at finances for those looking to make the plunge into home ownership.
However, while those costs would seem to be high, those are actually not the only costs you need to budget for. This isn’t to scare you - in fact I only want to prepare you! Home ownership can be an extreme rewarding experience and a symbol of patience, hard-work and good planning.
Take a look at the list below for a few more things you need to consider when it’s time for you to close the deal.
The Various Taxes
Ok, while you’re obviously used to paying taxes on all of your purchases thanks to the HST, homes do come with a few extra on top. Yes, sometimes the HST exists (when purchasing a new home) however real estate taxes vary by region and must be looked at when choosing a home. These taxes include:
- Land Transfer Tax
- Property Tax
You will want a lawyer to review the terms of the offer. Also you’ll want the title searched, a new title created and even your mortgage reviewed by a lawyer. Making sure you’re protected from a legal standpoint is an expense you can’t afford to ignore.
You could by a home by treating it like you’d by a new pair of shoes. ‘Yup, looks good and fits right, I’ll take it!’ If that’s your attitude, then you should most definitely learn about home inspectors. I would not even consider buying a home without having a licenced professional perform a walk through and assess the property. If you think that might be too expensive (this could cost anywhere from $250-$500), try buying a home that then needs work to the plumbing or electrical after doing so without an inspection.
Factoring in other costs like insurance, hook-up fees (utilities) and moving costs, your budget NEEDS to be more than just having the required percentage down payment for your offer/asking price. Having this information will help you make the right decision on your first home – and keep you from a horrible surprise when your deal is about to close.