How are Closing Costs for Homes Figured in Calgary, Alberta & what are other expenses that you may incur?
Mortgage Payout Penalty (Sellers)
If your mortgage isn’t up for renewal and you’re ending the fixed term early, depending on the mortgage you’ve selected, you could be facing a mortgage payout penalty, this amount can vary quite widely, but will depend on what rate the bank changes, the interest rate differential, and how long your term has left.
Real Property Report (Sellers Cost)
As a seller you are responsible for producing the real property report, often this documented is requested to be produced by a lender, also known as a survey certificate which as you may guess is supplied by a surveyor. In the Real Property Report you will see any encroachments where your building is not entirely on the property line. A buyer is able to purchase a real property report as well to ensure that their potential new home won’t come with a bag of issues! Approximate costs are $550-$650.
Legal Fees & Disbursements (Sellers)
Real Estate Commissions
This quite simply is a negotiation between each client and their real estate agent.
Moving & Storage Fees
Don’t forget that you could potentially be in limbo when buying/selling, and if you don’t have the time / desire to move you could be looking at anywhere from $500 to $1,500 in storage and moving fees.
Legal Fees (Buyers)
When buying you’ll also be looking at legal fees which will average around $900 but can vary depending on who you select.
GST 5% (Buyers) For New Homes Only
When buying a new home, it will be subject to GST.
Mortgage application (Buyers)
Often this can be waived by the lender (bank) but should be ensured not to be occurred, the bank can charge roughly $200 – $400 for this!
Inspection Fee (Buyers)
A general inspection will run usually between $400 – $500, with additional inspections adding more costs (asbestos, mould, water, etc)
Condominium Document Inspection
When buying into a Condominium you’re also going to want to see the health of the condominium corporation that takes care of your investment. A condominium review can run around $300.