- Land Transfer Tax
The property transfer tax must be paid before any home can be legally transferred to a new owner. Some buyers may be exempt from this tax.
- Goods & Services Tax
If you purchase a newly constructed home, you may be subject to GST on the purchase price. There may be some rebates available depending on the value of the home. For further information, contact the Canada Revenue Agency at www.cra-arc.gc.ca.
- Property Tax
If the current owners have already paid the full year’s property taxes to the municipality, you will have to reimburse them for your share of the year’s taxes.
- Legal Fees
The transfer of home ownership from the seller to the buyer must be recorded in the Land Title and Survey Authority Office in order to protect the new owner’s interests. You will probably want to engage a lawyer or notary public to act on your behalf during the completion of your purchase. The lawyer or notary public will charge a fee for this service, plus disbursements, including the Land Title Registration fee. If you are financing your purchase with a new mortgage loan, there will be a further fee and disbursements to prepare and register the mortgage documents.
- Appraisal Fee
When the lending institution requires an appraisal of the home before approving your loan, it may be your responsibility to pay the appraiser’s fee.
- Survey Fee
The lending institution may also require that a survey certificate be presented to them. The purpose of the survey is to formally establish the boundaries of the property and to ensure that all buildings are within those boundaries.
- Mortgage Application Fee
Lending institutions may charge a mortgage application fee. This application fee may vary between lending institutions.
- Mortgage Default Insurance
This type of insurance is required on most mortgage loans in excess of 75% of the appraised home value. Its purpose is to ensure that the lender will not lose any money if you cannot make your mortgage payments and the value of your home is not sufficient to repay your mortgage debt. The insurance premium is paid to the lender and, in most cases, is added to the loan amount and paid for over the term of the loan.
- Life & Disability Mortgage Insurance
At your option, you may purchase insurance which will ensure that your outstanding mortgage balance is paid if you die or become disabled.
- Fire & Liability Insurance
The mortgage lender will insist that you purchase an insurance policy which guarantees that, in the event of fire, the lender will receive the balance owing on the mortgage loan before you receive any insurance proceeds.
- Other Costs
Other costs could include: home inspection fees, moving expenses, deposits required by utility companies, household goods, like appliances and other equipment, redecorating or renovations