As you embark on your Markham real estate property hunt, you’ve likely followed all the steps of being a home buyer. You’ve done your research on the area, investigated competitors on the market, and completed a thorough viewing of a property that’s caught your eye. You’re getting closer and closer to earning your first Markham home after being approved for a favorable mortgage and submitting a competitive offer to a property seller. While you’ve committed to your buying budget and set aside sufficient finances, are you ready for the mortgage closing costs headed your way?
Closing costs are the final expenses you will need to pay before receiving the keys to your new Markham real estate property. They typically account for a small percentage of your home purchase pricing. Unlike your mortgage, you’ll need to pay these costs up-front, so you’ll want to be prepared for these charges when closing your Markham real estate deal.
Here are the closing costs that you will need to cover as the buyer in your Markham real estate transaction:
Home Inspection Fee
You’ll commonly need to pay this fee if you include a Home Inspection Contingency in your real estate contract. You will need to pay for the cost of having an official inspector visit the property and investigate its quality.
When you submit your offer to the property seller, it is beneficial to include a property deposit, which is a fraction of the down payment amount. Paying the deposit with your price offer will prove your legitimacy as a buyer and give you a competitive advantage among other potential buyers.
The Land Transfer Tax is a small percentage of your property pricing that must be paid when transferring property ownership. The tax rates that you’ll be required to cover could vary, depending on the value of the Markham real estate property.
After your seller has accepted your offer, you will need to pay for a real estate lawyer who will help organize your contract, review all details, and ensure the transaction is fair to you. This is especially required when purchasing a condo unit when you will need a lawyer to review the condo certificate contents.
Your lender may require that you obtain title insurance to protect you if you encounter any ownership disputes.
Your closing costs will add to thousands of dollars, so you’ll want to be prepared for these costs before officiating your transaction deal and not having the cash available on-hand. Fortunately, there are tools available, like an Ontario closing cost calculator to estimate your total expenses so you can be financially prepared when closing your property deal.
Work With a Markham Real Estate Expert
Closing costs are among the many intricate details you’ll want to be aware of when approaching a Markham real estate purchase. Let an expert local agent, like Martin MacFarlane, share the best buying advice so you can be prepared for everything and make sure you are satisfied with your new home. Contact Martin MacFarlane today to begin your successful home buying process.