Setting a budget and getting pre-approval
Determine what you can afford
Purchasing a home involves both one-time costs and on-going expenses. The largest one-time cost that you will have is the down payment. It usually represents between 5-25% of the total price of the property. Refer to the mortgage section for more information.
In addition to the purchase price, there are a number of other expenses that you may be responsible for. Typical one-time expenses include:
- Mortgage application and appraisal fee (paid at the time of application)
- Home inspection (paid at time of inspection)
- Legal fees (paid at time of closing)
- Legal disbursements (paid at time of closing)
- Property survey (paid at time of closing)
- Land transfer tax (paid at time of closing).
- Adjustments for fuel, taxes, etc. (paid at time of closing)
- Mortgage insurance (paid at time of closing)
- Home and Property insurance (paid at time of closing and on-going)
- Moving expenses (paid at time of move)
Typical on-going costs incurred by home owners are mortgage payments, maintenance, insurance, condo fees, property taxes and utilities.
Obtain a pre-approved mortgage
Having a pre-approved mortgage will give you the confidence knowing exactly what you can spend on a home before you start looking. You will also be protected against interest rate increases while you look for your new home. Refer to the mortgage section for more information.