| Buying your first house or condominium can be a | | | | Home Inspection |
| confusing as well as exciting experience. As a first | | | | Whether you are buying new or resale you should |
| time home buyer there are costs which you should be | | | | budget for a home inspector to inspect the property |
| aware of before you sign on the dotted line of the | | | | and give you a full written report so that you don't |
| agreement of purchase and sale. However there are | | | | have any big surprise expenses in the first couple of |
| also government incentives available to you as a first | | | | years. A home inspection will cost you between $300 |
| time home buyer. It is my hope to familiarize you with | | | | and $350. |
| these costs and incentives on this page. To begin let's | | | | Legal Fees |
| talk about costs of buying. | | | | You will need a lawyer to close the sale and register |
| Do I Have To Pay My Agent A Commission | | | | the deed and mortgage on the closing day. There are |
| When you hire your own Buyers Agent this will not | | | | many real estate lawyers to choose from and their |
| cost you one cent. The seller of the home you | | | | fees range from $1000 to $1500. If you do not know |
| eventually purchase will pay the agents commission. In | | | | any real estate lawyers let me know and I will give |
| fact your Buyers Agent will not only not cost you any | | | | you a couple of names to choose from. |
| money but will more than likely save you some money | | | | Adjustments on Closing Day |
| if he/she is doing their job properly. | | | | The seller of the home you buy may have prepaid the |
| Land Transfer Tax | | | | property taxes or in the case of a condo the monthly |
| Land Transfer Tax is a tax set up by the Provincial | | | | maintenance fees beyond the date set for closing the |
| Government of Ontario and is paid by the buyer in | | | | sale. If so you will have to reimburse them on a pro |
| every real estate transaction in Ontario. This would | | | | rated basis. |
| ordinarily be your largest expense in a home purchase, | | | | Home Insurance |
| however as a first time home buyer you will be eligible | | | | You will need to arrange home insurance on your new |
| for a rebate of up to $2000.00, an amount payable on | | | | home before the closing date and provide proof to |
| a purchase price of $227,500.00. Any amount above | | | | your lawyer which he/she will pass along to the Bank |
| this would be subject to the tax according to the rates | | | | or Trust Company providing your mortgage. They will |
| as follows:up to $55,000 X 0.5% | | | | not advance funds necessary to pay off the seller |
| $55,000 to $250,000 X 1% | | | | without home insurance.This should be approximately |
| $250,000 to $400,000 X 1.5% | | | | $400 to $500. |
| $400,000 and up 2% | | | | Title Insurance |
| City of Toronto Land Transfer Tax | | | | Sometimes problems or defects with the title to a |
| This is an additional tax levied by the City of Toronto. | | | | property can happen and they are forgotten or |
| As a first time home buyer you are exempt from this | | | | neglected. Title Insurance insures you against the |
| tax up to a purchase price of $400,000. Above that or | | | | expense of having to fix these problems after the sale |
| as a second time home buyer or more you will be | | | | has closed. It will also safeguard against mortgage |
| subject to the tax at the following rates:up to $55,000 | | | | fraud. It does not cover every situation and your |
| X 0.5% | | | | lawyer is the best person to explain these potential |
| $55,000 to $250,000 X 1% | | | | circumstances to you. Title Insurance for a typical |
| $250,000 to $400,000 X 1.5% | | | | home is in the area of $200 plus taxes. |
| $400,000 and up X 2% | | | | Survey |
| This is pure and simple a tax grab and a complete RIP | | | | This is important when you buying a house rather than |
| OFF by the City of Toronto. If you are not affected by | | | | a condominium. Most agents these days tend to |
| this tax as a first time home buyer you likely will be | | | | dismiss the absence of a survey by telling you Title |
| when you decide to sell. Your buyer at that time, if | | | | Insurance will cover any problems.........NOT TRUE. Title |
| they are not first time home buyers will have to pay | | | | Insurance does not cover all potential problems. If the |
| the tax and where do you think they will get this extra | | | | seller does not have an existing survey a new one will |
| money. They are going to take it directly off the top of | | | | cost in the region of $1000. Sometimes this can be |
| your asking price. | | | | negotiated to be split between the buyer and the seller. |
| The real estate community has fought this tax as an | | | | If your Buyers Agent is really good he may be able to |
| unfair burden to place on buyers but we remain | | | | have the seller absorb the full cost. I have done this in |
| dismissed by City politicians. You as a buyer need to | | | | the past. |
| let them know that this is not acceptable. Call your | | | | Moving Expenses |
| local City councilor or your member of Ontario | | | | This one is a personal decision as to whether you hire |
| Provincial Parliament (they gave the City this power to | | | | professional movers or rent a truck, get your friends |
| tax) and complain loudly. | | | | and buy a case of beer and a couple of pizzas. |