Leon Martin
Phone: (519) 669-5426 Ext 

Mobile: (519) 503-2753

Additional Costs for Buyers

When purchasing a home, aside from the purchase price itself, there are a number of other costs you will encounter. A description of each is provided below. You should familiarize yourself with them so that nothing comes as a surprise later.

Application fee- Most lenders charge a fee to process your application, since it costs them money to do this. Fees vary and some lenders will even waive the cost altogether. Keep in mind that I am also a licenced mortgage broker, so I can help you with all of your mortgage needs.

Appraisal fee- Mortgage lenders will lend only a percentage of either the appraised market value of a home, or the home's purchase price - often, the lesser of the two. The appraisal is done either by someone on the lender's staff, or by an outside professional. Either way, the appraisal fee often comes out of your pocket.

Land survey fee- Lenders also require a survey of the property. The survey outlines its boundaries, ensuring that there are no problems with neighbouring properties. This can cost quite a bit but, depending on when the last one was done, your lender may be able to accept the existing survey.

Inspection fee- The cost for an inspection fee is well worth the peace of mind it offers. Be prepared that some lenders will actually require a professional inspection before issuing a mortgage.

Insurance- If you are applying for a high-ratio mortgage, you may be required to pay for mortgage insurance. This type of insurance protects the lender. Also, you may want to consider purchasing mortgage life insurance - this type of insurance protects you and your family. Mortgage lenders will require that you protect your home with fire and extended-coverage insurance.

Legal Fees- A lawyer plays a very key role in the final transaction. You are responsible for paying for the costs incurred by doing a title search, registering and preparing the mortgage and drawing up the title deed. Some of this work can be done by the lender's lawyer, however, more often than not it is done by your own lawyer. You can usually save money by having your own lawyer draw up the mortgage.

Other Costs- Often sellers will have paid a number of their bills in advance and will want to be credited for these payments. Referred to as 'adjustments,' they can include utility bills and property taxes.

Land Transfer Tax- With rates varying between one-half percent and two percent, land transfer tax is payable by anyone who purchases property. It can be easily calculated by your real estate agent or lawyer.

HST and real estate- The HST has affected certain agreements, such as the purchase and sale agreements for new homes. HST, however does not apply to a used residence for re-sale. It has been added to such services as, the real estate commission, lawyer's fees, moving costs, home inspections and home staging.

Title Insurance protects you from such things as title defects, errors or omissions. This includes errors in the public registry and existing surveys. Title insurance also protects you from undisclosed heirs who may try to claim your property and/or fraudulently discharged mortgages. The cost is minimal and well worth the peace of mind. Ask your lawyer for more details.

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RE/MAX Solid Gold Realty (II) Ltd., Brokerage
3 ARTHUR STREET SOUTH
ELMIRA ON  N3B-2M4
(519) 669-5426
Real Estate License # 4714589