Buying a home in Markdale, especially if it is your first home, is an exciting process. You have determined how much home you can afford, you have saved your down payment, your Markdale REALTOR has helped you find the perfect home to fit your lifestyle and budget and your offer has been accepted. Congratulations!!

However, while the purchase price of your home is the largest cost you will encounter, there are other costs to prepare for when buying a home in Markdale. It's a good idea to budget some extra cash to cover the cost of obtaining a mortgage and "closing" your Markdale real estate transaction.

Buying Real Estate Property in Markdale

Here area few extra fees to keep in mind when buying real estate in Markdale:

  1. Appraisal Fee - Mortgage lenders will usually loan a percentage of the home's purchase price or the market appraisal of the property, whichever is lower. The appraisal is either done by someone on the lender's staff or by an outside professional approved by the lender. The cost of the appraisal is most often the responsibility of the person buying a home in Markdale.
  2. Application Fee - Find out whether or not your lending institution charges to process your mortgage application. In many cases, if you are dealing with a bank that you have other accounts with, they will waive the application fee.
  3. Land Survey Fee - Lenders require a plot plan or survey of the Markdale property for sale you intend to buy. On properties located in subdivisions in urban areas, lenders will often accept an existing survey, depending on when it was done. However, if there is no existing survey, be prepared to pay a substantial fee for a new survey.
  4. Home Inspection Fee - Many homebuyers choose to have a home inspection done prior to finalizing their offer when buying a Markdale home. Some lenders require a professional home inspection as well.
  5. Legal Fees - You will need to pay your lawyer to arrange your mortgage as well as for "disbursements" such as title search, drawing up the title deed and preparing and registering the mortgage.
  6. Land Transfer Tax - This tax is payable by anyone who purchases property in Ontario. A Markdale REALTOR or lawyer can help you calculate how much tax you will pay on your purchase.
  7. Good and Services Tax (GST) - If you are buying a new home in Markdale, you will be required to pay Goods and Services Tax of seven percent on the price of your home. GST does not apply to most resale homes.
  8. Insurance - There are several types of insurance that may be required when buying a Markdale home. If you are arranging a "high-ratio" mortgage (less than 25% down payment) you will need to purchase mortgage insurance. Mortgage lenders require you to carry fire and extended coverage insurance that exceeds the amount of the outstanding balance of the buildings. Other insurance you may want to consider include title insurance and life insurance.
  9. Other Costs - You will likely have to make property tax adjustments and interest adjustments on utility bills, heating oil etc. Ask your Markdale REALTOR to explain these additional costs so that way you have no surprises on closing day.
  10. Maintenance and Utility Costs - Finally, be sure to budget for heating, electricity, water and any immediate renovations you may have planned. It's a good idea to put aside any spare cash and contribute regularly to a maintenance fund so you will be prepared for any repairs or upgrades you may need to make after buying a home in Markdale.

Caldwell Banker and Markdale Real Estate Professionals

As Caldwell Banker and Markdale real estate experts, allow us help you with your new home purchase. We are here to make buying a home in Markdale a pleasant, smooth and enjoyable experience!