A Buyer’s Reference
You’ve found the house, you’ve made the offer, you’ve done the inspection, and you’ve waived conditions. Closing day is fast-approaching and you’re smart enough to know that your mortgage alone is not going to cover the cost of moving into your dream home. Sadly, you’re going to have to crank open that cheque book, and write one more cheque (or a few depending on your real estate lawyer) to make your dream a reality.
Some of the costs that you will pay for in buying a home will be paid before the deal is even final, and some of them won’t be payable until the last day, but how much money should be sitting in your chequing account that does not make up your downpayment? That’s what today’s blog is all about! Let’s talk closing costs!
Home Inspection/ Condo Doc Review $500-$800Whether you’re buying a single family home or a condominium in Calgary, you can’t escape the inspection process. It’s really for your own benefit and paying this cost up front could potentially save you thousands down the road. This is a cost you can’t afford to skip.
Mortgage Appraisal or Application Fee $300-$500*
With a great broker, you may be able to get these fees waived by the bank, but if you can’t you should be prepared to pay for them.
Legal Fees $600-$2000*
I challenge you to get a simple straight answer or flat rate from a lawyer in Calgary on what he charges to close a home deal. Because of disbursements, most lawyers cannot, and will not, be able to tell you what they are going to charge without a set of mortgage instructions in their hands.
Property Taxes *Ask Your Lawyer
Because property taxes in Calgary are paid 6 months previous and 6 months ahead, it depends on what day you purchase your house, and it depends on what the yearly amount of property taxes are. This is an expense that you need to discuss with your lawyer.
Home Insurance $300-$700*
This number is totally dependent on the provider you choose and whether they want payments upfront, by installment or monthly. It also depends on the kind of insurance that you go with. Do you want the Rolls Royce of insurance plans or will you have enough protection with the Toyota Camry?
Moving Expenses $200-$1000
Again, here it depends on whether your costs will be in buying beer and pizza for your buddies who have trucks, or whether you’ve pre-packed all of your belongings into PODS.
*Numbers are estimates only and can vary depending on situation.
The Vanderveen Team
Maxwell South Star Realty
Phone: 403.253.5678 Fax: 403.592.6736