Now, I know what you’re thinking. I’m already paying the down payment… what are the closing costs? Well, the process of buying a home can involve many parties including real estate agents, attorneys, etc. As a general rule of thumb, you should try and budget for around 3%-4% of the purchase price of the home to cover the closing costs. For example, on a house that costs $600,000, your closing costs could run anywhere from $18,000 to $24,000.
Land Transfer Tax
Calculating your Land Transfer Tax can be challenging, especially if this is only your second home. Thankfully there are many free resources online to help you make those calculations. Check out our Buyer Calculators here. The good news for first-time homebuyers is that although they do have to pay Land Transfer Tax, they can access available credits/rebates.
Many factors can impact how much you are paying in property taxes. Some of these factors include the size of the property, how old the home is, and the location. Many mortgages include the property tax into the mortgage cost, but you can choose to pay it separately if you wish! Be sure to check the amount by asking your realtor.
Home Inspection Fee
While a home inspection is optional, it is recommended that you get one to prevent any surprises and unexpected costs in the future! A home inspection can cost anywhere from $300 to over $500. Be sure to budget accordingly!
These are just a few of the costs to consider if you are trying to buy a home. The more prepared you are, the better!
Do you have questions about the home buying process or costs associated with buying a home? We’re here to help! Send me a message today or set up a time to chat to get started!