Home Buying Closing and other Cost in the Halifax Area

There are a number of costs associated with buying a house in the Halifax area. Most of these costs are paid on closing. Closing is the day you take possession of the property and pay for it. Here is a summary of most of them:

Legal fees- You will need a lawyer to complete the purchase of your home. Legal fees vary from lawyer to lawyer but on average it is safe to allow $650 - $800 for legal fees and another $300 - $400 for disbursements such as registering the deed etc. The legal fees for a purchase of a $250,000 home would be about $650 for the lawyer and $350 for disbursements for a total of $1000.

Deed Transfer tax- The municipality the home is located in will charge a fee to transfer the deed into your name. In most of the metro area this fee is 1.5 % of the purchase price of the home. For example in a $250,000 purchase you would pay $3,750 deed transfer tax. This tax is paid on closing to your lawyer who then pays the municipality. This tax is charged in many parts of the world. It is sometimes called a Welcome Tax.

Home Inspection Fee- It is a must to have the property you are buying inspected by a professional inspector. They will check out the home for structural soundness. The cost for this service for Housemaster for example is about $400 plus HST tax but varies from inspector to inspector.

Mortgage Appraisal fee: If you are putting more than 20% down on a property or if the lender considers your application weaker than the norm because you have poor credit or the property is not great you may get charged an appraisal fee of between $300-$400 plus HST About half the lenders will waive this fee but half will still charge you. If you are a typical buyer with 5-10% down, good credit and you are buying a good property you should not be charged this fee.

Tax adjustment- The owners of the home you are buying have paid yearly taxes the municipality. You will be required on closing to reimburse them for the taxes they have prepaid for the year. For example if they had paid $2,000 for the whole year and you were closing June 30th you would be required to pay the owner half of the taxes prepaid or $1,000. Count on 1/2 a year's taxes and you will be more than safe.

Fuel adjustment -If the home you are buying has oil heating or has a propane fireplace you will be required to pay the owner for a full tank of fuel on closing. The owner will fill the tank(s) the day before closing. You will pay this at your lawyer's office on the closing date. The cost for this will vary. Currently a full tank of oil would be about $900 and a full tank of propane is about $400.

Moving costs- There will be some cost to move to your new home. If you are moving a long distance get a number of estimates before deciding on the moving company. Even a local move will cost you.

Power and telephone hook ups- Allow for the cost to reconnect your telephone and power. Allow $75 each for these.

New Appliances, curtains etc..- You will need appliances for your new home as well as curtains and other necessary items. Allow enough for these items in your closing cost calculations.

Fire/Homeowner's Insurance- You will be required to have fire insurance on your home on the day of closing. The mortgage company requires the lawyer to have proof of this on closing. This can often be arranged in monthly or other installments. $700-$900

Water quality and quantity tests - If the property you are buying is on a well the mortgage company will require that you obtain a water test for quality. The water is tested for bacteria, arsenic and uranium. The cost to have this test completed is about $100 with the most complete test being about $160. You should also consider having a " Flow Rate" test completed also. This test will determine the amount of water the well is currently producing. The cost to have a professional do this is between $300 and $400. This is an optional test but one we would strongly recommend.

Septic field test - If the property you are buying has a septic field is it advisable to have it tested for leaks etc. This costs about $300 to complete.

© Copyright 2000 - 2012 All Rights Reserved - Sandy and Judy Hines. All text, images and video are the original creations and the sole property of Sandy and Judy Hines. Any duplication without permission is prohibited.
MLS®