What are closing costs? This is a question we often get. It is the expenses that you need to pay in order to finish off the purchase of your home. Some common ones are an appraisal, home inspection, legal fees, title insurance and if you are buying a home outside of Alberta, many provinces and jurisdictions require a land transfer tax.

One other thing that is really important that you understand is that you need to be able to document that you have 1.5% of your purchase price in liquid cash available to pay your closing costs. Your lender is going to ask you for proof of that.

There are some other expenses that you might want to know about. After the purchase of your home, for example, you may hire a mover or moving van or anything like that, your utility hook ups, any cleaning expense. Because you are responsible to leave the home that you sell, or your apartment if you are moving out, in clean order and as well as any other little improvements that you need to make to fix up the home. You have to leave it in a condition that the new buyer is going to want it.

And finally, also you want to be concerned that your home insurance is going to go up as a home owner versus if you happen to be coming out of a rental situation.

But here is something else I think I want you to consider and that is, we are talking about your closing cost when you are purchasing a home but I think it is really important and most people don’t consider about the closing cost when you go to sell this home that you are now considering buying.

For more information about protecting yourself in that check out my other video in this series called: What is LTV?

Thanks for watching.

If you would like more information on this or other mortgage related topics contact Canada Mortgage Direct in one of the following ways:

Visit our website at CanadaMorgageDirect.com.

You can phone our office: 403-250-2100

Or you can email us at Save@CanadaMortgageDirect.com

We would also like to invite you to the Canadian home Buyers Academy and you can visit us there at the CanadianHomeBuyersAcademy.com

Thanks again!

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