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4 New Home Section Tuesday, September 13, 2011 hottesthomes .ca What does it really cost to buy a house? It is important to know exactly what costs on top of the purchase price you'll be responsible for when purchasing a new home. Closing costs often come as a surprise to new home owners and can be quite considerable (between 1.5% and 2.5% of the purchase price), so it is important to budget for them in addition to your down payment, moving, and decorating costs. What are closing costs? Here is a brief list: Home Inspection: An inspection by a certified professional is for the benefit of the buyer and helps to alleviate concerns with respect to the condition of a property. A home inspection costs between $300 and $450. Mortgage Appraisal: Lenders require an appraisal of a property to determine market value prior to processing your mortgage. While often waived by the lender, appraisals can range from $150 to $450. Some lenders also charge a mortgage application fee. Property Survey or Title Insurance: When a new survey is not available, Title Insurance protects Buyers from losses due to title defects. While a survey can cost over $1,000 depending on the size of the property, title insurance typically starts around $275. Land Transfer Tax: Payable to the province, this tax is calculated in tiers as a percentage of the selling price of a home (visit www. landtransfertax calculator.ca). First time home buyers can qualify for a refund of up to $2000. Home Insurance: Mortgage lenders require a certificate of SALES REPRESENTATIVE insurance when you take possession of your home. Like all insurance, the price varies depending on a number of variables but ranges from $600 to $1,200 for most properties. Adjustments (between Seller and Purchaser): Buyers are required to repay the Seller for prepayments they have made in relation to the property such as property taxes, utilities, condo fees, or topping off the oil tank. Legal Fees and Disbursements: Your lawyer will charge fees for professional services including title search, drafting the title deed and preparing the mortgage. These fees vary, but expect to pay between $600 and $1,000, plus out of pocket and miscellaneous expenses up to $350. Harmonized Sales Tax (HST): Resale homes are not subject to HST. However, HST is payable on the sale price of a newly constructed or a significantly renovated home. HST is also collected on professional fees, and on CMHC Insurance fees. Not all of these costs may pertain, and depending on your circumstance, others may apply. It is best to speak to your lawyer for more information. Thom Gallagher is a Sales representative with Johnson Associates Real Estate Ltd., Brokerage. For More information on this article or to discuss listing or buying a home, call Thom at (416)524-6530 or visit www.hottesthomes.ca. Homeowners insurance can be your MOST VALUABLE POSSESSION. Mike Francis, Agent 123 Main Street South · Georgetown, ON L7G 3E5 Bus: 905-877-9652 · · mike.francis.qg7g@statefarm.com mike@mikefrancis.ca LIKE A GOOD NEIGHBOUR, STATE FARM IS THERE. Providing Insurance and Financial Services ® P048100CN State Farm Fire and Casualty Company Canadian Head Office, Aurora, Ontario 02/05 Dave LoDuca Ceramic Tile Installation Back Splashes · Heated Flooring Bathroom Renovations 416-989-7809 905-877-1936 Free Estimates loducatile@gmail.com ROBINSON & SON PLUMBING Licensed Plumber thom@hottesthomes.ca Listing? Buying? Call me! OFFICE 905.877.5165 DIRECT 416.524.6530 Repairs & Installation Renovations & New Construction Drain Cleaning & Inspection 247 GUELPH ST., GEORGETOWN 905-702-5456 SAVE up to 30% on your energy bills with an ecoENERGY Audit Dominion Lending Centres Homestead Financial, #11711 An Independently Owned & Operated Corporation (Downtown Georgetown) When it comes to flooring...nobody does it better.® 26 Guelph St, Georgetown · 905 877-9896 carpetone.com · 1-800-CARPET-1 Catherine Evel, Lic. # M08001936 Ph: 905-690-6834 Cell: 905-741-2110 Fax: 905-690-4493 email: catherine.evel@dominionlending.ca http://www.catherineevel.ca Canada's Leading Home Inspection Company Want a FREE Home Inspection? Find out how: www.HowHomeInspectorsHelp.com Call today to speak with an Accredited Mortgage Professional 1-800-794-58800