Houses for Sale in Waterloo Ontario: Closing Costs
Everyone dreams of owning a home at some point in their life and it is not uncommon to find many bright-eyed people looking at houses for sale in Waterloo Ontario. What many of these people fail to know is that there is more to buying a home in Waterloo Ontario than posting the down payment. This article will explore a few additional costs that have to be budgeted for during a home purchase.
The Land Transfer Tax
Whether you are buying a new home or one that is up for resale, you will be required to pay the land transfer tax. Houses for sale in Waterloo Ontario attract a land transfer tax that is approximately 2% of the total price at which you are purchasing the property.
If, however, you are a first time home buyer, a sizable chunk of that tax will be waived. First time buyers are generally taken to be those that don’t own a property anywhere in the world rather than those that don’t own property in Waterloo Ontario, but have homes elsewhere.
If you are buying a new home, it is also possible to qualify for an additional rebate on the municipal fees that you are supposed to pay.
It is therefore important to look into any of these incentives or deductions that you may qualify for so that the closing costs are brought down by the applicable margin.
Another area where additional costs pile up is in the area of legal fees. The attorney handling the purchase on your behalf has to be paid, and the amount will depend of the agreement you have with that individual or firm.
Title Registration and Insurance
Once you complete the purchase, you are expected to have the title transferred to your name and that costs money. Once the registration is completed, you will also incur a cost to cater for title insurance. All these are costs that have to be met at closing so if your funds are only limited to covering the down payment, you will have to look for additional money to cater for these extras.
The real estate agent you used to look for that property as well as help you with other aspects of the home purchase must also be paid for their services. This, again, will depend on what you agreed upon as you hired them so set aside money to pay them too.
There has been a deliberate attempt to avoid stating actual figures as what you should expect to pay for each of the extra costs connected to buying a house in Waterloo. This is because closing costs linked to houses for sale in Waterloo Ontario vary and are changed from time to time so you need to educate yourself on the rates applicable at the time you wish to make your purchase.
There are many more additional resources that can open your eyes to the different aspects that buying a home involves. All you have to do is visit here for all the latest updates so that any issues you may have can be addressed.