Thinking about buying a property any time soon?
If so, here are the closing costs to be aware of before you buy, so you don’t have any unwanted surprises.
1. Appraisal Fee
– Your lender needs to determine the property value for mortgage purposes. It may or may not be the same as the purchase.
2. Survey Fee
– Indicates land boundaries and measurements, positions of major structures, and any easements or encroachments.
3. Property Taxes
– Your lender may include property taxes in your mortgage payments.
4. Legal Fees
– An attorney should review the paperwork of every home purchase. Make sure your attorney’s quote includes all related expenses and disbursements, not just legal fees.
5. Mortgage Default Insurance
– Protects the lender in case you default on your loan. If your down payment is less than 20%, you’re required to pay an insurance premium, either at closing or added to your mortgage amount.
6. Land Transfer Tax
– Some provinces and cities collect this tax whenever a property changes hands. First-time buyers are sometimes exempt.
7. Home Inspection Fee
– A professional evaluation of the structures and systems of your home. While not mandatory, many buyers make an inspection a condition of their offer to purchase.
– Payable on some properties, especially new builds. Check with your Realtor.
9. Title Insurance Fee
– Covers problems and costs that may arise due to title issues.
10. Interest Adjustments
– You’ll have to pay interest on any gap between the closing date and the first payment date.
11. Property Tax and Utility Adjustments
You’ll have to reimburse the vendor for any prepaid property taxes or utility bills.
12. Mortgage Life Insurance
– An option that protects your family’s financial security if you or your spouse dies.
There are your 12 closing costs you need to be aware of before you buy your home.
For more information on these closing costs, specific to your situation and how to budget for them, call us to find out!
For Vancouver Mortgage Broker related inquiries ~ 604 628 5040.
For Vancouver Luxury Realtor related inquiries ~ 604 566 8968.
Vancouver Mortgage Broker
Vancouver Luxury Realtor