by RBC Insurance
Get to know the hidden costs of buying a home
Let’s face it, visiting open houses is the exciting part of house hunting. It’s the planning and actual moving that can be stressful. And then, all of the extra costs! Not only moving costs, there are also other hidden costs – known as closing costs over and above the price of your home– and are usually required before you even move in! To help lesson the impact of closing costs, experts recommend saving 1-2% of the price of your home. Here are some examples of what your closing costs could be:
• If your mortgage lender requests a land survey and there isn’t one that exists, it can cost a substantial amount to have one created.
• Home insurance is required by your financial institution and is needed at closing. It’s important to arrange for home or condo insurance in advance. It’s easy to get an idea of the cost with a free quote online.
• If you’ve been renting, you’ll now need to factor in property taxes into your expenses. When closing your home, you may be asked to pay the seller any property taxes that they have paid in advance. Property tax calculators can usually be found on your city’s website.
• Setting up utilities and services for your new home or condo may sometimes require a deposit – especially if it’s your first home and they don’t have a credit history to check.
• Other costs could include: a zoning report, a home inspection or first month’s condo fees.
The day has finally arrived – you get to move into your new home! This is the day you’ll need to provide the balance of your new home’s purchase price plus any closing costs. If you’ve done your research and planning right, you can enjoy decorating and getting settled into your new home.
Article provided by RBC Insurance. To find out more about home insurance, go online at www.rbcinsurance.com, or visit an RBC Insurance branch near you. Home and auto insurance is underwritten by RBC General Insurance Company or RBC Insurance Company of Canada.