Hidden Costs of Home Buying in Kingston

Kingston Real Estate Podcast with Pierre Nadeau

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I'm frequently asked about the expenses incurred both before and after a real estate transaction. It's an especially common question with first-time buyers who don't have experience in the market. It's one thing to come up with upfront costs that may sneak up on you, but there are also costs that pop up with maintaining the home.

As a first-time buyer, you're probably looking at putting down about 5%. There are programs that allow you to put 0% down. After that, you're paying land transfer tax, which runs about $2,225 for a $250,000 home in Kingston, for example. After that, you have lawyer fees which range from $1,000 to $1,500 depending on how much work they have to do.

Nowadays, mortgage companies require an appraisal about 90% of the time and they'll expect you to cover that cost as well. It ranges from $350 to $450. I personally always recommend that you have a home inspection as well, which runs about the same cost as the appraisal. If you're buying a country property, I also recommend a well inspection, which also runs in that price range. If you're buying a condo things are a bit different, as you won't have some of those other costs, but you will need a status certificate, which costs about $100.

One of the last things in this category to think about is when you're all done, we'll have what's called a "statement of adjustments." With this statement, you see the buyer and the seller responsible for their own portion of taxes and utilities. Your lawyer will adjust all that and give you those costs at that time.

Some other types of costs include CMAC fees. If you're putting 5% down on a $250,000 house, you're only looking at about $8,550, and CMAC fees are usually blended into your mortgage, so you usually don't need to worry about bringing that to the table up front.

Then there are carrying costs. Once you get into the house, you're definitely going to need some carrying cost money. Some of the things you want to worry about are property taxes, and normally in Kingston, you're looking at about 1 to 1.5% of the value. Remember that you'll be reassessed, too, so allow yourself that percentage to pay in property taxes. Next are heating costs, water, and sewer.

The next thing to think about is any renovations you want to do like painting, changing flooring, or fixing the deck, for example. You also need to consider insurance, so call your agent to ask about it. Then you'll have expenses like phone and cable. If you're buying a new construction home, remember that you may need appliances, landscaping, a deck, or even a paved driveway. Some builders do not include some of these things that buyers may think come standard. Another cost that can add up that many people don't consider is curtains and blinds, especially for high-quality ones. The costs add up.

If there are questions you have about this topic or anything related to real estate, please don't hesitate to give me a call. Have a great day!