How Much Should I Expect to Pay on Closing Costs
Whether you’re looking to buy your first home, or trading up to a larger one, you probably are wondering how much are closing costs for a house in Calgary. There are many costs – on top of the purchase price – that you must figure into your calculation of affordability. These extra fees, such as taxes and other additional costs, could surprise you with an unwanted financial nightmare on closing day if you’re not informed and prepared on how much to expect to pay on closing costs.
Some of these costs are one-time fixed payments, while others represent an ongoing monthly or yearly commitment. Not all of these costs will apply in every situation; however, it’s better to know about them ahead of time so you can budget properly.
Remember that buying a home is a major milestone. Whether it’s your first, second or tenth home, there are many important details to address during the process. The last thing you need is unbudgeted financial obligations cropping up hours before you take possession of your new home.
The following checklist while help you budget properly for your next home purchase, and being informed about the closing costs.
- Appraisal Fee
Your lending institution may request an appraisal of the property, which may be your responsibility to pay for. Home appraisals can vary in price from approximately $175 -$300.
The lender may pick up this cost, be sure to ask.
- Property Taxes
Depending on your down payment, your lending institution may decide to include your property taxes in your monthly mortgage payments. Depending on the month of possession you may owe the seller prepaid taxes or the seller may owe you back taxes.
- Survey Fee
When the home you purchase is a resale (vs. a new home), your lending institution may ask for an updated property survey. The cost for this survey can vary between $700- $1,000.
- Property Insurance
Home insurance covers the replacement value of your home (i.e. structure and contents). Your lending institution will request proof that you are insured as it protects their investment on the loan.
- Service Charges
Any new utility that services your hook up, such as telephone or cable, may require an installation fee.
- Legal Fees
Even the simplest of home purchases should have a lawyer involved to review all paperwork. Shop around as rates vary greatly depending on the complexity of the issues and the experience of the lawyer. Tom Waller has a list of preferred Calgary lawyers that will do an excellent job for you.
- Moving Costs
The cost for a professional mover can cost you in the range of:
- Approximately $100/hour for a van and 3 movers, and
- 10-20% higher during peak demand seasons.
- Maintenance Fees
Condos charge monthly fees for common area maintenance such as grounds keeping and carpet cleaning in hallways. Costs will vary depending on the building.
- Water Quality and Quality Certification
If the home you purchased is serviced by a well, you should consider having your water checked by your local experts. Where you live determines whether or not a fee is charged, to certify the quantity and quality of the water.
- Local Improvements
If the town you live in has made local improvements (such as the addition of sewers or sidewalks), this could impact a property’s taxes by thousands of dollars.