Wednesday, February 15, 2023 / by Evelyn Lopes
MUST KNOW COSTS WHEN BUYING A HOME
Are you or someone you know looking to buy your first home?
As a first time home buyer, you have likely been saving your pennies and you may think you’re finally ready to buy a home? Are you?
Let's look at some of the hidden costs that you may not be aware of when purchasing a home, so that you can be best prepared to enter the real estate market.
Most first-time homebuyers know that they need to budget for a down payment when buying a home, but many overlook the other costs involved.
Have you ever wondered how much does it cost to buy a home?
If you’re preparing to buy your first home, make sure you have budgeted enough to cover additional expenses, like a home inspection, appraisal fees, insurance, and closing costs.
Here in the greater Toronto area and surrounding communities, you can expect to pay around…
? $500 for a home inspection,
? Approximately $500 for a home appraisal,
? And $150-200 month for home insurance
? Keep in mind that these fees may differ- higher or lower, depending on your location, type, size, age and condition of the property that you are considering buying.
Closing costs can vary, but are typically between 3 and 6 percent of the loan or mortgage amount. The largest part of this fee goes towards the Land transfer tax, which is due on closing, but remember, if you are a first time home buyer you will be entitled to a land transfer tax rebate, as one of the buyers incentive programs available to first time buyers.
Being properly prepared for the additional costs involved in purchasing a home will keep you on track towards your dream of homeownership.
There are several programs, rebates and numerous ways in which first time home buyers can get into the real estate market and start building their equity.
For example, if you are a young buyer and you are still living at home, you can purchase a property, and rent it out, while still living at home. The income generated from that rental can be used towards the qualification of the purchase amount, enabling you to buy at a slightly higher price than you can qualify for based on just your own income. And if you live at home and are lucky enough to not be paying rent, then you have more disposable income that can help you qualify for more, which in turn may help you get into the market.
This is just one of the ways we can help you or someone you know get into the real estate market. There are numerous ways to get into the market if you are just starting out. Have questions? We can help. If you would like to talk about your specific situation and your options, feel free to reach out. You can call directly at 905-965-5902 or book a call online using the link- https://calendly.com/evelynlopes/consultation-meeting-evelyn-lopes-realty-team. We are the Evelyn Lopes Realty Team and we are here to help.
Check out these informational videos:
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