Buying a property is an important project that needs to be well prepared. Of course, you will be surrounded by a team of professionals who will accompany you through the various stages of the purchase process. Nevertheless, it is to the advantage of future owners to be well informed and to know the various costs and fees associated with the purchase of a property. Of course, people immediately think of the mortgage, the down payment and the notary, but the list doesn't end there. Let's take a closer look at what to expect so that you don't leave anything to chance and, above all, so that you can plan and budget your project effectively.
Transfer tax (welcome tax)
This tax varies according to the price of the property. It is calculated on the basis of the higher of the price paid at the time of purchase or an amount calculated on the basis of the municipal assessment.
Notary fees
The notary's fees vary, but are generally $1,000 or more, depending on the work to be done on your file.
Adjustments at the notary's office
Many people forget that when they go to the notary, there is a good chance that you will have to write a cheque for the expenses paid in advance by the seller in order to reimburse him on a pro rata basis. This amount may include a portion of municipal taxes, school taxes, snow removal or lawn mowing contracts, furnace oil in the tank or hot water tank rental fees, etc.
School and municipal taxes
Many financial institutions will suggest or even require that taxes be included in your mortgage payment. This is an effective way to ensure that your tax payments are up to date and that you do not fall behind.
Payment of GST and QST
This tax is applicable if you are buying a new home. If you are buying a new home, you will have to pay these taxes and should budget for them.
Home insurance
Take the time to shop around for home insurance and get several quotes to compare. Not all insurance companies have the same criteria, and you may be surprised at the price differences from one company to another.
Inspection fees and tests
Don't forget the inspection fees, which vary from $600 to $1,000, as well as the tests that will be recommended by the inspector, if necessary; in particular, tests for air quality, water quality, the septic tank or the presence of asbestos, etc.
The move
Will you ask for help from your family or will you call in a removal company? In the latter case, prices vary according to many factors such as distance and time of year, and the final bill can quickly skyrocket.
... And the "extras
Of course, I could easily extend the list by adding in reconnection fees for various services such as electricity, internet and cable, or mail forwarding costs. You may also need to buy new furniture, paint your new home or do some minor renovations.
If we calculate the purchase and start-up costs as a percentage, we could say as a "rule of thumb" to allow for an amount equivalent to 3 to 5% of the price of your house.
Source : Article by Ghislain Larochelle on the journaldemontreal.com on the 12th february of 2022
Link : https://www.journaldemontreal.com/2022/02/12/acheter-sa-maison-combien-ca-coute-vraiment
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