Additional costs for home buyers

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When purchasing a new home, in addition to the purchase price, you will normally incur a number of additional expenses. That is why, we would like to talk about additional costs for home buyers, in this post. There are many additional expenses such as land transfer tax, legal fees, etc.

Land Transfer Tax:

One of the largest additional expenses when purchasing a property in Ontario is the provincial land transfer tax. The land transfer tax payable is normally based on a percentage of the amount paid for the land. In addition, The Ontario land transfer tax percentages range from 0.5% to 2.5% of the purchase price.

HST on the purchase price:

In addition, if you buy a new home, HST will be payable. HST does not, however, normally apply to the purchase price of used homes. HST is 13% of the purchase price. Many builders include the HST in the purchase price, while others charge the HST in addition to the purchase price.

HST on transaction costs:

Even if HST is not payable on the purchase price of your home, HST is payable on most transaction costs, such as legal fees and disbursements, real estate commissions, appraisals, home inspections, and survey fees. HST is not payable on land transfer tax or mortgage insurance fees.

Additionally, It is very important to know in advance how much money you will actually receive from the sale of a property and how much you will need for your purchase. Your lawyer will be able to calculate most of these costs for you and provide you with an estimate of these total amounts.

This post was a simple definition of Additional Costs for Home buyers. Real estate is our job, so please reply if you need our help!

BABAK MEHRABI, Real Estate Salesperson

https://www.reco.on.ca/

 

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1 thought on “Additional costs for home buyers”

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