HOME BUYING COSTS IN HALIFAX
There are many costs associated with buying a home. You can find a detailed list of most of them here
Legal Fees— You will require the assistance of a lawyer in order to complete the purchase of your new home. Legal fees do vary from lawyer to lawyer however you can budget on average of $750 to $950.
Deed Transfer Tax— Every municipality charges a fee to transfer the deed. In HRM this fee is 1.5% of the purchase price and is due on closing.
Home Inspection— I highly recommend hiring a certified inspector. This fee is typically $400-$550. In addition to the standard home inspection there is also radon testing and sewer video inspection to consider. This would be an additional cost.
Home Insurance—Insurance must be in place on your new home on the day of closing. Your financial institution will require proof of this.
Title Insurance—In the absence of a location certificate your lawyer may recommend obtaining title insurance. Some lawyers recommend purchasing it even with a location certificate. It is a one time purchase and generally will cost less than $300 depending upon the value of your home.
HST—If you are purchasing new construction there is HST due on the purchase price. Most builders include the HST in the purchase price but not all. It is important to confirm if HST is included. In some instances a completely renovated home may be subject to HST as well. HST is also imposed on the commission paid to realtors.
Property Tax Adjustment and Fuel Adjustment—The seller would have paid the property tax on the home you are purchasing. It is normal practice for the seller of a home with oil and/or propane to fill the tanks just prior to closing. On closing these items will be adjusted by your lawyer so the seller is reimbursed for these expenses according to the closing date.
Mortgage Appraisal—Some financial institutions may require an appraisal on the home you wish to purchase before they provide final approval. You would be responsible for this fee ,generally around $400 plus HST.
Moving Costs—You will need to either rent a truck and enlist the help of your friends or hire a moving company. You should factor one of these options into your budget.
Utilities Hook Up—You will need to arrange cable, telephone, power, internet etc when moving into your new home. Most of these companies have a hook up fee. Check with your provider in advance of your move so you know what to expect.
New Appliances and Window Treatments—Some homes have these items included and some do not. This can be a rather large expense so it is important to consider these items.
Water Quality & Quantity and Septic Inspection—If the property you are buying is on well and septic you will want to have a water quality and flow test completed as well as a thorough septic inspection. Water quality tests can run up to $300 depending on the extent of the test you wish to have completed. Water flow test looks at the supply of water in your well. This can cost around $300 to $400. A thorough septic test including a video inspection can run up to an average of $500. These tests may sound costly however discovering after you have purchased that the water is not drinkable and/or the septic is not functioning can be very costly to repair or replace.
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