Buying a property: expenses to expect

Whether you are buying a condo or a detached home, it is important that you do your due diligence to ensure you know exactly what you are purchasing. The following is a list of some costs you may encounter when buying a property.

1. Home inspection by a certified professional – they inspect condos, townhouses and detached homes, and will give you a written report on the condition of every major system and component of your home
2. Review of condo documents– There is long list of condo documents that you need to review when purchasing a condo. You can also hire a specialist who will review the condo documents with you and answer any questions you may have. You can learn more about condo documents on my blog post: Condo Documents Explained
3. Additional inspections – some homeowners will also have the main sewer line scoped, or an electrician inspect the wiring, or a basement specialist to look at cracks in the foundation – depending on the property you purchase and what comes up on the home inspection, you may want a more in-depth opinion prior to waiving conditions and making the purchase final
4. Legal fees - you will need a lawyer to finalize the transaction
5. Appraisal fee - Your lending institution may request an appraisal of the property – talk to your mortgage broker to see if you will need one
6. Homeowner’s insurance: it is imperative you speak with an insurance broker to ensure you have the best protection for your home, even if it is an apartment condo. Your lender may also require you to have insurance in place prior to funding the mortgage. You can read some tips about insurance HERE.
7. 5% GST: this fee applies to newly built homes or existing homes that have recently undergone extensive renovations (like, they are practically brand new!). If the property is listed on the MLS, it is required to have GST in the listed price.