It's a joyful experience to find a house that you love, find out you can afford it, and have your offer accepted. It's equally devastating when you get the contract and realize that the hidden costs have added up and put the house out of your price range. It's a situation that Ontario first time home buyers, especially ones who choose to buy without the assistance of a real estate agent, frequently find themselves in. To keep you from overreaching yourself financially or losing your dream home, here's a guide to hidden costs you need to watch out for.
Fees
The services you use to determine whether a piece of Markham real estate is suitable all add up. This includes the appraisal fee your mortgage lender will require to certify the price of the house, as well as the fees for applying for, underwriting, and closing the mortgage itself. Utility companies charge fees for hookups, especially for new homes, and housing development and condo associations charge membership and maintenance fees.
Certificates
A number of things will need to be certified by a paid inspector before your lender will sign off on the mortgage. They may need to certify that your Kitsilano real estate doesn't infringe upon another property, which requires a surveyor. If you have a septic system, this will also need to be checked out, as will your water quality if your home has its own private well.
Taxes and Insurance
The government loves to take their cut of everything you buy, from packages of socks to homes for sale in London, Ontario. You must pay a certain amount on top of the purchase price in order to transfer the title from the seller to you. You'll also be charged a certain amount of tax per year based on the value of the property, and the first time you pay it will probably be concurrent with the purchase of the house. Another monthly fee to remember is your homeowner's insurance, which protects against things like fire damage. Don't think you can do without it, either. Your lender won't approve you.
Moving Expenses
Once all the fees are paid and the titles have changed hands, don't think you're home free. Your realtor can go back to peddling Toronto real estate listings but you have to pack all your things up and move them into the new house. Most people will need to buy boxes and rent a truck to transfer their belongings.
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