Making a solid budget is a vital component of the home buying process, especially if you’re a first time home buyer. While many home buyers are focused on the sale price of a potential new home, there are also closing costs that need to be considered because they’re typically paid up front. It’s important to remember these closing costs when making a budget.
HST – new homes are subject to HST, which is paid up front, while resale homes are not. If you’re buying a new home from a builder or condo developer, be sure to keep this tax in mind.
Legal fees – A lawyer is normally a good idea when you’re buying a home, and their services can prove invaluable for new home buyers when it comes to reviewing documents and keeping the transaction on track.
Appraisals or property surveys – It is not uncommon for a mortgage lender to require that you get a property survey or appraisal so they can see exactly what they’re providing funding for.
Are you surprised by any of these closing costs?