How much does it really cost to move?

Thinking of buying and wondering how much it really costs to move?

If you are a first time buyer or it has been a while here is a summary of what you are looking at for the overall budget. 

Costs During Purchase

• Home inspection

Getting a home inspection is a smart decision, because a qualified home inspector can identify underlying problems with a home’s major systems, like heating and electrical. To find a qualified home inspector speak to your real estate representative or check the websites of various home inspector associations.

• Appraisal and/or survey

Your lender (e.g., a bank) may require an appraisal (or occasionally a survey)of the property you want to buy before they will finalize financing. This is to double check that the value of the home according to their appraisal service matches its sale price.

Closing Costs

• Land transfer tax

In Ontario, a land transfer tax of up to 2 per cent of the purchase price applies. In Toronto, an additional tax applies, also up to 2 per cent. First-time homebuyers are eligible for a refund of the tax. Talk to your real estate representative about your eligibility. Besides the purchase price, LTT is the most expensive part of moving.  http://www.trebhome.com/buying/ltt_calculator/ltt_calculator.htm

• Mortgage insurance

If the down payment on your home is less than 20 per cent of its sales price, you will be required to buy mortgage insurance. Rates depend on how much you are borrowing. For more information, visit www.cmhc-schl.gc.ca.

• Legal fees

There are a number of legal documents and contracts involved in the purchase of a home. Your lawyer will do a title search on the home to ensure the seller can actually sell the property and that there are no liens against it. They will also register the deed and mortgage for you. Find an Ontario lawyer by visiting the Law Society of Upper Canada www.lsuc.on.ca.

• Title insurance

Title insurance protects you against title fraud, errors in public surveys, encroachment issues with neighbours and more. Speak to your lawyer during the closing period for more details.  This is a one-time cost and not annual.

• Adjustments

Adjustments are costs that the seller pre-paid but which you now owe because you’re the one who’s going to be living in the home (e.g., property taxes, maintenance fees, rental fees for hot water heaters). You will need to refund the seller for these for the days that you own the home.

• Home insurance

You must have insurance on your home before lenders will release the funds for the sale to close.

Harmonized Sales Tax (HST)

Newly-constructed homes are subject to HST of 13 per cent, although buyers may be eligible for rebates from both the Ontario and Federal governments. HST does not apply to resale homes.

AFTER-closing Costs

• Moving costs

Moving costs vary widely based on how much stuff you have, how far you’ll be moving, and whether you’ll hire a professional mover or rent a truck and move yourself, hire packers, instrument specialist etc.  If you need a reco, call me.

• Utility and service hook-ups

Some gas, hydro, water and telecommunications companies charge a hook-up fee.

• Renovations and repairs

If you want to make major renovations after move-in, it can add significantly to your costs. A home inspection or disclosure from the seller may also identify repairs that are needed. Don’t forget to re-examine your inspection report when the excitement has worn off to look for home maintenance in and improvement recommendations. Doing so is not only prudent home ownership but it could even prevent a flood or fire.

• Appliances, furniture and decorations

Once you’re in your new space, there’s a good chance you’ll want fresh décor to make it your own. Don’t rush into buying too much. See how you use the space and go from there.

Call or email with questions – lisa@lisagrahamhomes.com direct: 647.203.1800 or follow me at @lisagrahamhomes on FB or INSTA.