Closing Costs in Nanaimo or What's that house really going to cost me?

 Closing Costs in Nanaimo

 One of my jobs as a real estate professional is to encourage my clients to take the time to familiarize themselves with all the costs involved with buying a home.  One of these added costs that people often either overlook or just don't know about are the closing costs.

When you work with me we will have reviewed all the closing costs and responsibilities prior to viewing homes.  However, with all the commotion of buying a home it can be easy to forget budgeting for closing costs. In order for your sale to complete there are fees owed on, or by, closing day.  Most of these fees are in addition to, and separate from, your mortgage loan. 

I have listed most of these expenses below.  Please note: These expenses are approximations only - they may vary depending on suppliers, and are prone to frequent changes.  Not all of the expenses listed below will apply to every purchase.  In addition these costs are based on current closing costs in Nanaimo only.

Deposit at time of offer - $5,000 or more

Mortgage application - Typically not more than several hundred dollars.  May be waived

Property inspection (optional but recommended) -  $400-$500. Approximately.  Depends on size and age of house.  Due at the time of inspection.

Property Appraisal - $300-$400. May be required by the bank especially if putting less than 20% down

•       Legal fees (including disbursements) - Expect to pay between $800 -$1000 for a real estate lawyer, but cost varies depending on the extent of services provided. Due at closing.

•       Property site survey- If there is not one available you may want to pay for one if you plan to put up a fence.  $350.- $450

Land Transfer Tax - Currently it is 1% on first $200,000 and 2% on each $100,000 thereafter.  Example- $400,000 house would be a total of $6,000.

•       Interest adjustment - Varies with mortgage amount and terms. Due at closing.

•       Property tax/pre-paid utilities adjustments - Varies widely.  Due at closing.

•       Mortgage default insurance - Varies depending on the principal amount of your mortgage. Due at closing.

•       Property/fire insurance -Varies according to coverage level, region and property type. Due by closing.

•       Title insurance - Around $200. Due by closing.

•       HST- On new homes or homes over a certain value.  Please visit http://www.taxtips.ca/realestate.htm  due by closing if applicable.

Please contact me if you wish to receive additional information on closing costs in Nanaimo and/or a list of suppliers.