“Hidden” Costs Of Buying a Home

‘Hidden’ Costs of buying a home.

When you purchase a new home, you are mostly thinking about your new mortgage and the down payment money. While also worrying about getting your conditions fulfilled. What you haven’t had time to think of is other costs that might not be so obvious, but you still need to budget and prepare for.

Closing Costs – Be prepared for the unexpected costs before closing – your lawyer will most likely need to be paid before closing. And prepaid taxes, title insurance, and other adjustments can all be more. Be sure you are planning for it.

Moving Supplies – When you start to think about packing, and you look at all your stuff, you might think, “I’m gonna need a lot of supplies for this.” From boxes, tape, and bubble wrap to the moving company. Don’t underestimate the expenses needed to actually move.

Land Transfer Tax* – can become forgotten about until you meet with your lawyers, and the number makes your eyes pop out of your head!

You can get a rough estimate of the land transfer tax based on the purchase price of your property. First-time home buyers may be eligible for a rebate.

Utility Hookups – Before you move into your new home, you have to set up your utilities. It may be required of you to pay a hookup fee to get your new utilities started.

Even though these costs aren’t actually ‘hidden’, they certainly are things that you might not think about until it is too late. So, now you can prepare yourself for the “hidden” costs of buying a home!

• Read more on the Land Transfer Tax here –  Real Estate Terms Part One