When purchasing your home, remember that not only do you need to have a down payment and ongoing mortgage payments, taxes, utilities, and condo fees paid, but you also have closing costs associated with a home purchase that you need to consider when budgeting for the biggest investment you will make in a lifetime.
Initial Deposit – When writing an offer to purchase in Alberta, you are required to provide a deposit cheque. These funds will clear your account shortly after negotiations and will be a part of your down payment.
Down Payment – In Alberta you will be required to pay a minimum of 5% of the purchase price of your property. This down payment is required at the time of purchase (Possession Day)
Condo Document Review – Every condominium is different. It is important to have your condominium’s documents reviewed by a professional. This process can cost you between $300 and $500
Home Inspection – On average, a property inspection in Calgary or Airdrie will cost you between $300 and $600. Some property inspections however can get a lot more costly. Depending on the size of the property and the depth at which an inspection needs to be completed, a property inspection can be over $1,000. For example, properties such as rural, acreages, Specialty Homes, or former grow-ops, each have a degree of in-depth investigation that would require special attention.
Appraisal Fees – Typically the lender or the mortgage broker will pay the cost of an Appraisal. However you may be stuck with the cost. This will run you between $200 to $400 depending on the property. Specialty homes may cost more.
Mortgage Insurance or CMHC Fee – You will be required to pay a CMHC fee if your down payment is less than 20% of your purchase price (There are some acceptations to that rule, but not very common) The higher your down payment, the less you pay for your mortgage insurance. The premium on total loan can vary between 0.60% to 3.85%. Your Mortgage Broker or bank will be able to tell you what that cost will be.
Lawyer Fees and Disbursements – Legal fees are based on the purchase price of your property and the mortgage amount. Those fees can vary from $1,200 to $1,600
Moving Costs – Depending on who you hire or have as a volunteer to assist you with your move, the cost can greatly vary. Whether you decide to hire a moving company or have your friends help out, the difference in cost is quite significant.