Purchase Expense Checklist | Sarasota Homes International, LLC

Purchase Expense Checklist

Buying a home costs more than the offer you make. There are numerous other expenses that will add to the amount that you’ll need to spend. This purchase price checklist outlines all the costs you can expect. Please note that they can vary by province and are subject to change.

Purchase Price

The starting point in your calculation… if you’re like most first-time home buyers, you’ll need a mortgage for the majority of this!

Lawyer’s Fees

Although fees vary across the country, it can cost you up to $3,500 depending upon whether you are re-mortgaging your existing home or buying new. As prices do vary, your Dan Plowman Team member can assist with the selection process and help you get superior service at a reasonable price.

Land Transfer Tax

Is a tax payable to the Provincial Government by the purchaser upon the transfer of title from a seller. This amount is usually not expected by most homeowners. It can be sizeable. The amount varies from province to province and is generally a percentage of your purchase price. Your Dan Plowman Team Member can advise you, of the exact fee based on purchase price.

Registration Fees

Fees paid to the provincial government for recording a title transfer, mortgage registration or other instrument such
as an Assignment or lien with the local authorities.

High Ratio Insurance

Must be purchased if you are buying a home for less than 20% down. A sliding fee scale applies, depending on the percentage of the purchase price required in a first mortgage (some minor exceptions) which can be added to the mortgage.

Compliance Letter

Obtained by your lawyer and required in many municipalities throughout Canada before a property transfer can take place. This is an acknowledgment from the building department that the property either has, or is clear of outstanding work-orders. Work-orders are specific clean-up or fix-up requirements that the owner is legally required to do, and which must be completed before ownership can be transferred.

Tax Certificate

Obtained by your lawyer at the time of sale to confirm that local taxes have been paid and are up-to-date. If they are not up to date, the seller is required to pay them from the proceeds of the sale. If there are insufficient proceeds, then you may be legally required to pay the outstanding taxes. If, on the other hand, taxes have been prepaid, you may have to compensate the seller for them.

Provincial “New Home Warranty Program” premiums – New Homes Only!

A third party (provincial) warranty program between a builder and a buyer. With the exception of Ontario and Quebec, membership in such a program is voluntary for the builder. Through these programs, your home is guaranteed against defects for at least one year. All homes with a high-ratio insured mortgage (greater than 80% loan to value) must be enrolled in such a program.

Mortgage Appraisal and Application Fees

Application fees apply on high ratio mortgages only while appraisal fees are common to most mortgages. Generally $150 – $235 each would apply.

Sarasota Homes International, LLC