April 7, 2016 | Buyers

Cost Of Buying a House

Ever wonder what the cost of buying a house is?

Below is a list of common expenses that you should budget for when buying a house. Depending on your specific situation some of these might not be applicable to you. Cost of Buying a House:  Deposit: This is typically given to the seller’s brokerage within 24hrs of acceptance. In Guelph, an average deposit for a house: Under $500,000 is around $15,000-$20,000. For houses, $500,000 to a million the average deposit is $25,000 to $30,000. For houses, 1 million + it is typically $50,000 + Home Inspection: $400 – $500 + HST Down Payment: You will need this money on closing. The minimum down payment for most lenders is 5%. If you put 20% or more down then you do not need to pay mortgage insurance. Appraisal Fee: Most lenders will require an appraisal of the house that you are purchasing to verify its value. The appraisal cost is typically $350-$700. Many lenders will cover the appraisal fee. Land Transfer Tax: Approximately 1% of the purchase price. If you are a first-time buyer, then you are eligible for a $4000 rebate. Land transfer tax calculator. Cost of Hiring a Moving Company:  This can vary significantly depending on how much furniture you are moving and if you would like packing services as well.
Below are two local moving companies that can provide you with free quotes: Lawyer Fees: $1250 -$2000 + HST for the buying side Mortgage Insurance: If you are doing less than a 20% down payment, you will need to pay mortgage insurance. Usually, premiums range between 0.5% and 2.75% of the principal. This additional cost will get added to your mortgage amount. Please let us know if you have any questions about the cost of buying a house! Are you buying & Selling? Click here to see the common costs associated with selling your house.
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