Home Inspection

Prior to making an offer to purchase a property, a buyer with have a certified building inspector examine the house. The cost of this home inspection is borne by the buyer.

Appraisal Fee

An appraisal is a market-based assessment of the value of a home, to determine a selling price or qualification for a refinance. This value is not necessarily the same as the home purchase price.

Security Deposit

To demonstrate their commitment to fulfilling a purchase transaction, buyers will usually place a security deposit. This deposit is applied to the purchase of a home, and is refundable under appropriate circumstances. The amount of the deposit varies based on the purchase price and the vendors. This money is held in trust during the transaction.

Down Payment

Amount a buyer puts against the sale price of the property at the time of purchase, usually based on their cash in hand. Down payments can start from zero upwards when purchasing a property.

Property Transfer Tax or Land Transfer Tax

A tax levied by some provincial and municipal governments when property changes ownership. Some provinces offer first time buyers a rebate of the property transfer tax.

Legal Fees

You will need a lawyer to complete the purchase of your home. Legal fees vary from lawyer to lawyer but on average it is safe to allow $650 – $800 for legal fees and another $300- $400 for disbursements such as registering the deed etc.

Mortgage Loan Insurance

Mortgage loan insurance enables home buyers to purchase a home with as little as zero down payment. The amount of the insurance premium depends on the amount borrowed from the lender. Generally, this insurance is built into the mortgage amount.