Looking for a new home can be an exciting time full of possibilities. Like most, you probably have a budget in mind that you're hoping will accommodate all of what you need and maybe even allow for a few wants. To help you prepare a more realistic budget, and to help you not get blindsided with extra costs, we've created a list of hidden home costs to reference when you begin the search for a new home.

Legal fees:

A lawyer will go over all your paperwork and ensure your transaction is in order before you purchase your home. Their fees are approximately $2000

Home Inspections:

Home inspections usually cost $400 - $500 and take between 3 - 4 hours to complete. The home inspector will let you know if there is anything wrong with the home before it becomes yours.

Land Transfer Tax:

When you acquire a property or land, you pay land transfer tax to the province when the transaction closes. Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land. If you are a first-time homebuyer, you may be eligible for a refund of all or part of the land transfer tax.

Calculating Land Transfer Tax

0.5% on the first $55,0001.0% on the portion between $55,000 - $250,000 1.5% on the balance over $250,000

Closing Adjustments:

Any interest that is accumulated between your first mortgage and closing date need to be squared. This cost will vary based on your mortgage and closing date.

Insurance:

With your mortgage comes insurance. This cost will vary depending upon the home you purchase and your contents.

Moving:

If you have friends that can help you move you may only have to cover the expense of a rental truck, beer, pizza (and potentially damaged items). Your other option is a professional moving service. This can cost you upwards of $1000.

Move-in Costs:

Whether you're upsizing or downsizing you'll likely need to purchase something new for your new home - whether your couch is too big or your dining room table is too small ...

Maintenance:

It's a good practice to set aside 3% to 5% of your home's cost per year for general maintenance. That way you’ll be prepared when you need a new roof, carpets, windows….the list goes on.

A general guideline to establish closing cost is to plan for 2% of the purchase price.

For example, closing costs on a $250,000 purchase will be approximately $5,000.

To find more information on the ins and outs of purchasing a home be sure to download our Home Buyer's Guide. It will help you go into the process much more knowledgeably and reduce stress, in what can be a stressful, but exciting process! If you have any further questions we’d love to meet with you! Feel free to contact us any time.