If you are a first-time home buyer, you may be anxious to move into your new Victoria home. As you prepare for your first home purchase, you may have saved enough funds for a sizable down payment and already met with a potential mortgage lender. However, there are more costs associated with buying than you may anticipate. Before starting your next exciting house hunt, you’ll want to have an understanding of the closing costs associated with your Victoria property purchase.
If you are a first-time home buyer, you may be anxious to move to your new Victoria home. As you prepare for your first home purchase, you may have saved enough funds for a sizable down payment and already met with a potential mortgage lender. However, there are more costs associated with buying your next Victoria home. Before entering your exciting house hunt process, be prepared for the closing costs you will also need to face in your property purchase deal.
What Are Closing Costs?
Closing costs include the extra costs associated with owning the property. These are the administrative expenses involved in transferring property ownership from one party to another. They are typically 1.5-4% of your Victoria property pricing, which is why you need to make sure you save up for more than your down payment when buying your first home.
Costs Before Your Deal Closes
You may need to pay some closing costs before your mortgage is official. One major expense you will need to pay for is the Home Inspection Fee if you include an Inspection Contingency clause in your purchase and sale agreement. Another cost before closing your deal will consist of a deposit to submit to the seller. This is necessary as part of your purchase offer, as it demonstrates you are a legitimate buyer.
More costs you could be paying before acquiring the property include:
- Mortgage insurance fees
- Appraisal fees (sometimes covered by your lender)
- Land survey costs
Closing Costs
Once you and your seller are satisfied with all met contingencies and details in your purchase and sale agreement, you will have more closing costs as you claim your new Victoria property.
Property Transfer Tax:
In BC, new home buyers must pay a PTT, which could range from 1-3% of your property pricing, depending on its value. Note that if it is your first time buying a home in Victoria, there is a system to help you afford the property by exempting you from paying a large portion of the PTT costs.
Legal fees:
- Incurred when developing your real estate contract and requiring review to ensure all conditions are met and justifiable
Title insurance:
- Requested by lenders in case of property ownership conflicts
Beyond these costs that you will need to pay when taking ownership of a new Victoria property, you will also face other costs involved with moving, maintenance, and upkeep. Some extra closing costs you could face include:
- Moving fees
- Utility billing
- Security system installation
- Home insurance
Don’t let these high costs sneak up on you. The sum of these payments could amount to thousands of dollars, so it’s best to keep a closing cost fund set aside when looking for your first Victoria property purchase. By being financially prepared, you will have more freedom during your house hunt so you can find the home of your dreams.
Let a Top Realtor in Victoria, BC Help
Brad MacLaren is the best realtor in Victoria BC. He understands closing costs and the many insights you need to know when buying a new home on the market. He will help you find the best property that suits your needs and desires within your budget. Enjoy the process of looking for your new Victoria home by contacting Brad today.