ADDITIONAL COSTS WHEN BUYING A HOME

ADDITIONAL COSTS WHEN BUYING A HOME

The purchase price of your home is only one of the costs you’ll encounter. Here are other possible costs you need to consider:

 

Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you’re going to need mortgage loan insurance. Depending on the lender, the premium can be added to mortgage payments.

 

Appraisal fee: Lenders typically loan a percentage of the home’s purchase price or the market appraisal of the property. Cost depends on the size and complexity of the assignment.

 

Land survey: The lender may ask for a current survey or certificate of location before signing off on the loan. There can be a substantial cost for having a new survey done on the property.

 

Deposit: A deposit normally goes with the formal offer to purchase.

 

Insurance: The lender will require proof of property insurance for the replacement value of the house and its contents from the day you take ownership.

 

Title insurance: Provides coverage in case of problems with the property title among other things. The cost is relatively low, usually a few hundred dollars.

 

Application fee: Some lenders will pass on the cost to process your application. These fees vary and some lenders will waive entirely if you have other accounts with them.

Mortgage broker’s fee: If you use a mortgage broker, a fee may be charged to arrange a mortgage on your behalf.

 

Home inspection fee: An inspection protects the buyer by revealing any problems in the property that you’d want to know before you move in.

 

Legal fees: You can save some of the legal fees usually charged by the lender if your lawyer draws up the mortgage. You’ll also pay for disbursements which are the costs involved in drawing up the title deed, conducting a title search, and preparing and registering the mortgage.

 

Land Transfer Tax: There is a provincial Property cash grab the province charges you to buy a house. If you live in Toronto, they want to get their greedy hands on your life investment as well. So If you buy in Toronto there is two taxes and one outside of Toronto.

 

HST: Resale (used) homes are exempt from HST but it does apply to newly constructed homes and may qualify for a partial rebate depending on the sales price and if the home is going to be your primary place of residence. HST also applies to most of the services provided in completing the real estate transaction.

 

Other costs: These include moving costs, fees charged by utilities for service hook-ups, property tax and other adjustments (an adjustment takes place when the seller has already paid for something in advance and wants to be credited for the unused portion on the date the house becomes yours), and ongoing maintenance (condo fees etc) and utility costs.

 

Real Estate Fees: Typically the Seller on paper is paying the fees for Real Estate and it is incorporated in the sale of the property. Some sellers refuse and want the buyer to pay for their own, and this is where you must incorporate that into your purchase price.

 

Condos: Builder Closing Costs, Condo Reserve Fund, and more. As An Agent the Builders of this generation hits you with a document not even the lawyers can understand, but one thing they do have in there is that they can charge you whatever they want at closing to make a few extra bucks in their pocket. They will charge you for the their closing costs with the city and they will charge you for God knows what. Anyway, know that you will need some extra money in the bank come closing time. Your lawyer can help and cap fees, but you will still be charged something. Bet on that.

 

READ RECENT BLOG & ARTICLE POSTS BELOW

Are You Ready For Your Information To Go Public?

I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...

read more

ADDITIONAL COSTS WHEN BUYING A HOME

The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:   Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance....

read more

Over Rated Home Features

When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....

read more

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real estate at...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing.   ...

read more

John Tory’s Toll Would’ve Increased House Value Everywhere

John Tory’s Toll Would’ve Increased House Value Everywhere

While the Ontario Government cut this John Tory’s dream of having a great highway into Toronto short, I believe he was on the right path to increasing the value of Real Estate.

When I heard they were going to add some sort of toll to cars going into the city, I was appalled, and really upset. I travel in and out of the city daily. It would cost me a lot of money each day and year.

I then started thinking of the long term benefits of having a better hi way solution and transit solution into the city. Millions of dollars would be saved bJohn Tory with hand over facey not having to maintain the Gardiner from crumbling each day. (yes the new hi way would need maintenance) We could afford more transit into the city, and pay for better transit solutions, like Light rail, and possibly more subways.

Eventually traffic would be better, and more people would stay in the city, rather than commute.

Areas around the city would start to develop more, and values would go up, and like the boom we have now, the suburbs prices would increase. Places around transit would develop more so workers didn’t need to use their cars. Other cities like Hamilton, and other GTA neighbours would develop and grow together while using Toronto as a hub. It would be great!

Mayor Tory

Yes, I know we paid for the hi-ways already, and I get that, but there is no new money coming in, the budgets are maxed out, and the taxes are maxed. The people living in the cities should not be the only ones to pay for hiways going into the city.

Mayor Tory will have to find another way to get the billions he needs for transit, hiways, and new park projects. The Ontario Government killed this one for votes next year, but John still believe’s they owe him. Check out this article 

READ RECENT BLOG & ARTICLE POSTS BELOW

Are You Ready For Your Information To Go Public?

I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...

read more

ADDITIONAL COSTS WHEN BUYING A HOME

The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:   Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance....

read more

Over Rated Home Features

When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....

read more

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real estate at...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing.   ...

read more

Liberals Are Going to Tank This Market!

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market. 

 

The middle & lower class does not like the fact that they cannot afford any real estate at this time. The only thing that they can afford is a property out of town, or something run down with huge maintenance fees. This is a result of a sky rocketing market over the past few years. 
In the next few months before the springtime budget, you will see poll after poll, and news article after news article of how they are scratching for any idea to get some money in their pocket, and make real estate affordable for the middle and lower class by stagnating the market from the rich, and from foreigners. 
Liberals will achieve this slow down in the market by doing a few things either in combination or bring them about slowly. 
1. Foreign buyers tax like Vancouver
2. Raise provincial land transfer tax
3. Raise capital gains, or have a 
provincial capital gains
4. Let municipalities introduce a land transfer tax
5. Raise Interest Rates (Most damaging)
One Thing is for sure, the liberals are coming for Real Estate money, and they are running out of time to do it, so expect something by the end of the year, so they can say they did something by election time next year. 

READ RECENT BLOG & ARTICLE POSTS BELOW

Are You Ready For Your Information To Go Public?

I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...

read more

ADDITIONAL COSTS WHEN BUYING A HOME

The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:   Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance....

read more

Over Rated Home Features

When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....

read more

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real estate at...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing.   ...

read more

Marijuana will Be a Major Concern when buying houses next year

Marijuana will Be a Major Concern when buying houses next year

Right now marijuana, and grow ups are a fairly minimal concern when buying houses. Agents typically put a clause that the owner never grew or has known about any grow ops in the house, but this is about to change next year. What is changing is that July 1st, 2018, Marijuana, will become legal to smoke and grow. 

This will change how the industry goes about its regular business. I believe that home inspectors will become more valuable next year because, sometimes its hard to detect the previous growth of Marijana, in a house if you do not know what to look for. 
Here is a list from the RECO website, of things to look for, while they do recommend a professional home inspector, it is a good thing to educate yourself.  
  • Mould in corners where the walls and ceilings meet
  • Unusual number of roof vents or signs of roof vents
  • Fresh paint on window frames to cover damage caused by high levels of humidity
  • Painted concrete floors in the basement with circular marks where pots once stood
  • Evidence of tampering with the electric meter (damaged or broken seals) or the ground around it
  • Unusual or modified wiring on the exterior of the house
  • Brownish stains on the underside of beams or arches that bleed down a wall
  • Concrete masonry patches, or alterations on the inside of the garage
  • Patterns of screw holes on the walls
  • Fire place alterations
  • Denting on front doors (from police ramming the door).
After July 1st, 2018, it will be very interesting to see reports of houses that have stigmas due to marijuana growth.

READ RECENT BLOG & ARTICLE POSTS BELOW

Are You Ready For Your Information To Go Public?

I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...

read more

ADDITIONAL COSTS WHEN BUYING A HOME

The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:   Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance....

read more

Over Rated Home Features

When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....

read more

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real estate at...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing.   ...

read more

Drone Restrictions Will Change Marketing for Real Estate

Drone Restrictions Will Change Marketing for Real Estate

For the past few years, all of the new buzz in Market was for aerial footage. While it was great and produced some really cool pictures and video, there is going to be a shift away from the practice.

Many Real Estate agents got their own drones, and did their own flying illegally, because to do it properly was almost a full time job. You needed to fill out a mountain of paperwork, get insurance, and basically plan a battlefield war. While some agents actually hired professional companies to get this type of footage, this costs a fortune.

The reason why agents just went out and bought a drone and risked doing their own shots were that the laws were not very clear and there wasn’t much of a penalty. Fast forward to 2017, and after multiple close calls around airports and other accidents, the government has finally come out with some legislation that will hurt somebody if they are caught fighting illegally.

Here are some of the new regulations directly from Transport Canada’s Website.

Do not fly your drone:

higher than 90 m above the ground
closer than 75 m from buildings, vehicles, vessels, animals, people/crowds, etc.
closer than nine km from the centre of an aerodrome (any airport, heliport, seaplane base or anywhere that aircraft take-off and land)
within controlled or restricted airspace
within nine km of a forest fire
where it could interfere with police or first responders
at night or in clouds
if you can’t keep it in sight at all times
if you are not within 500 m of your drone
if your name, address, and telephone number are not clearly marked on your drone.

If you fly your drone for fun and it weighs more than 250 g and up to 35 kg, you do not need special permission from Transport Canada to fly.

Follow the basic safety rules below. Not doing so may put lives, aircraft and property at risk. If you fly where you are not allowed or choose not to follow any of the rules below, you could face fines of up to $3,000.

As you can see this will definitely change the way marketing will be done, and most agents due to the cost will probably opt out of this kind of footage rather than take the risks.

READ RECENT BLOG & ARTICLE POSTS BELOW

Are You Ready For Your Information To Go Public?

I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...

read more

ADDITIONAL COSTS WHEN BUYING A HOME

The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:   Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance....

read more

Over Rated Home Features

When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....

read more

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real estate at...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing.   ...

read more

New Mortgage Rules Will Affect the Canadian Housing Market

New Mortgage Rules Will Affect the Canadian Housing Market

I’m not going to write about the new mortgage rules, but you can read about them right here. So Go read them and come back.

Now that you are up to speed here is what will happen in the short and long term.

The market in the next few weeks is going to go crazy, I mean until the rules officially set in, people are going to try to buy something right away that cannot qualify under the new rules.

Like Vancouver the market is also going to drop a little bit. The reason being, the new rules are going to turn investors, foreign investors, and people who live here that invest off for a while until they can figure out the new rules and see what effect it has on the market.

The new rules affect the people who really don’t have 20% down and can afford a higher priced house. So what will this mean. Cheaper houses are going to be more sought after as well as townhouses, condos that are more affordable. Rentals will be going up as well.

The next major rules that will affect the foreign buyers that are using the tax loop holes to get away with not paying capital gains, so this will deter those buyers as well.

The thing about these new rules is that it will not affect the investors who live in Canada, who have money, who do not rely on these rules, and these loop holes. There are a lot of buyers who already have more than 20% or can get the funds necessary. Its a simple phone call to mommy and daddy who have a line of credit on their house and can lend off of that other property. So these rules will not affect those people and will make the world a more secure place in that sense.

So will these rules affect the housing market? Definitely these new rules will have huge ramifications in the market and the prices will even itself out a bit, and in other areas that are hot, they will not. This will also spurn a hot market in the lower echelon of prices for houses. Here is the thing about predictions, just when everybody thinks the market is going to get lower, nothing happens and the prices climb higher the next year. So nobody really knows.

READ RECENT BLOG & ARTICLE POSTS BELOW

Are You Ready For Your Information To Go Public?

I read the articles, I read the comments, people want information. They want it all. That is the new way of doing business. They want all of the information that real estate agents have access to, and they want it for free, and they want it now. People think they have...

read more

ADDITIONAL COSTS WHEN BUYING A HOME

The purchase price of your home is only one of the costs you'll encounter. Here are other possible costs you need to consider:   Mortgage loan insurance: If you are putting less than 20 per cent of the house value down, you're going to need mortgage loan insurance....

read more

Over Rated Home Features

When I do an open house or put a house up for sale, I always get a few questions about features that I always say, why do you want that. Here they are: 1. Central Vacuum: Why do you want to lug around a snake and try to clean the house? Its simple, its called Dyson....

read more

Uber is Not Like Real Estate!

I read articles all the time written by Real Estate agents who are trying to convince themselves that we are in a good business to be in, and that it is necessary to use an agent for every transaction. In Toronto, put up a sign and your property will be sold by the...

read more

Transit Solutions Would Help Lower GTA Prices

One thing that can truly help lower GTA prices are some major transit solutions. It is apparent that the GTA market and all of the surrounding areas have gone buck wild in the past few years, and especially in the last few months. So many sales records have been...

read more

Why You Should be Underpricing Your House For Sale?

Its all about quantity and impression.When people are buying a house, they get into some-what of a HEAT! Underpricing Your House drives that heath up. I would call it a hunter gatherer mind set. Buyers are constantly on the hunt, and one thing that I've noticed is...

read more

Would You Go Into a Court Without a Lawyer?

Buying a house and using the listing agent is like going into court without a lawyer to represent you. Each and every time I have a listing, I have somebody calling me asking me "what's the price if I don't have an agent and buys directly though me?" I always want to...

read more

Liberals Are Going to Tank This Market!

What is the one thing the liberals are looking for right now? Votes and money. The way that they will try to get both is to try and capitalize on this hot real estate market.    The middle & lower class does not like the fact that they cannot afford any real estate at...

read more

Tesla’s Solar Roof Powered Shingles

Solar roof panels are the ugliest feature to attach to your house. I tried to sell a house once with solar panels and nobody wanted to even think about it. The panels were bulky and ugly, and the technology to save the power to batteries was messy and confusing.   ...

read more

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