Since I’m in home buying mode, I will share with you some expenses involved with purchasing a home. A lot of young readers here don’t own homes yet, so this may help with the planning.
In Newfoundland, purchasing a home with a mortgage requires that you pay a “mortgage tax” which works out to be about 1% of your mortgage balance. In other provinces, there is a “Land Transfer Tax” (if you have an existing home to sell). On top of that, you’ll have to pay the lawyer fee which around here works out to be $500 + title search. For me personally, my legal fees for purchasing only will work out to be around $2500.
If the home that you are purchasing does not have an updated survey, the lawyer will require that you get one. This should cost around $300 + tax but can sometimes be split between the buyer/seller.
A home inspector is essential when purchasing a home, especially if it’s an older home. These will cost you around $300 + tax, but worth it in my opinion.
Real Estate Agent:
A buyers real estate agent “should” be free of charge. They get their paid by splitting the vendor agents 5% – 6% commission.
This cost can vary as it depends on your circumstance. If you move a long distance, then a mover can cost a pretty penny (cost depends on distance). For a local move around here, they charge around $80-120 / hour. To save a few dollars, you may decide rent a U-Haul and move everything yourself.
If appliances do not come with the home that you are purchasing, you’ll have to go out on your own and find some. The best bet is to shop around and compare prices. When looking for the best deal, make sure to read over their warranty and their cost of shipping the items. Another thing, make sure that they insure their movers so that you are covered in case they damage your floors while moving the appliances.
Microwave: $50-$650 (over the range)
If this is your first home, you may have to purchase all of your furniture. May I suggest though that instead of purchasing everything all at once, purchase things over a span of time. When we purchased our first home, we purchased our bed and bed frame,TV,dining room table, washer/dryer, sofa/love seat all at one time ($6500 – all new).
As time passed, we purchased window coverings, coffee table/end tables, lamps, receiver, and speakers. To this day, we still don’t have a bedroom set. :) If you are diligent, you can find some good used stuff in the newspaper and during moving sales.
As you can see, it’s not cheap to purchase a home, but it’s well worth it if it’s a good move for you and your family. Remember, cash is king. If you are planning on moving in the near future, save some cash to avoid purchasing everything on credit.If you would like to read more articles like this, you can sign up for my free weekly money tips newsletter below (we will never spam you).