Costs to Expect When Buying a Home

What costs can you expect to incur when buying a home.

The deposit.

This can vary depending on the area and the price range of the home that you are buying.  If you are buying a home with a 5% down payment, the deposit will be 5% or less.  Ask us what would be fair for the area and type of home you are buying.  Most of the time the deposit is expected within 2 business days of offer acceptance, and must be by certified cheque or bank draft.

The down payment.

The minimum down payment right now in Canada is 5%.  Downpayments of less than 20% down will require mortgage insurance.

The home inspection.

This is a comprehensive investigation into the systems of the home.  It varies upon the size of the home.  You should budget from $350 to $500.

Land Transfer Tax.

There is no land transfer tax in Alberta.

Legal Fees

Legal fees will vary depending on the cost of the home and whether you have a mortgage or not.  You can call to get a quote from most law firms.  The important thing is to have a lawyer who specializes in real estate.

Utilities

Utility hook-ups and deposits. If you have not had the service before, they may ask for a deposit.

Moving costs.

If you are moving yourself, you must book a truck in advance.  If you are using a professional mover you can get a quote from several different companies; check references; if the price is too good to be true, it probably is.   It does help if you can avoid moving at the end of the month.  When buying a home, you can choose to avoid moving at the end of the month, this will ease competition for moving vans or movers.