1. Home Inspection Fee
a. This fee could save you from having a huge expense once obtaining possession of a home. By having a home inspection, you may discover an underlying issue in a home which you never would have known about without the inspection.
2. Property Taxes
a. All home owners will pay property taxes and the amount will depend on the home you purchase. Budgeting to save monthly for property taxes is a great idea.
3. Lawyers Fees
a. Lawyers fees will vary depending on your purchase price. If you decide to use the same lawyer as the seller, you may receive a discount in legal costs.
4. Home Insurance
a. Home insurance protects your home in case of unfortunate incidents such as fire, flooding, (or HAIL!) etc. Speak with your insurance agent to find the best insurance for you.
5. Mortgage Life Insurance
a. This is a form of term insurance which will pay off the balance of your mortgage in the unfortunate case of your death. Most lenders can provide you with this form of insurance or you may purchase it from an outside financial company.
6. Mortgage Insurance
a. If you have a high-ratio mortgage, the government requires that it be insured against default and that you pay the cost of insurance. The cost to you ranges from .51 to 2.90 per cent of the mortgage amount and is added to the mortgage principal. (ie. CMHC insured mortgage)
7. Appraisal fee
a. Some lenders will require an appraisal on the property you wish to purchase. This may be at your expense depending on the financial institution.
8. Land Survey Fee
a. Some lenders will require you to have an up to date survey of the property. This will be at your expense to have a new survey done.
a. GST may be required on the purchase of a brand new home. If the home has already been lived in, you will not have to pay GST.
10. Maintenance and Utility Costs
a. In addition to mortgage and property taxes, you should also budget for heating, electricity and other expenses which you will encounter monthly. Condo fees are another monthly fee which you will pay on top of your mortgage payments.
11. Land Transfer tax fee
a. A fee which all Manitobans must pay when they purchase a home. It is calculated based on purchase price.
12. Moving Costs
a. Hiring a moving company or renting a truck will also add onto your bills. Decide whether or not you will need such a service and budget accordingly.
13. Other costs
a. This includes adjustment of property taxes, utility costs, etc. which the seller has paid in advance beyond possession day and will be reimbursed for.