Closing Costs When Buying A House (in Winnipeg)

CLOSING COSTS WHEN BUYING A HOUSE OR CONDO IN WINNIPEG デデ I hope that you would agree that home buyers need to now all the costs involved in buying a home. Over the years I have found that many buyers are not aware of the fact that there are additional costs (called Closing Costs) when buying a house or condo. I had always 'assumed' (I know.you're not supposed to do that), that banks would counsel their clients as to the actual costs involved. Alas, I learned that this is not always so. In this article you will learn about the list of closing costs for buying a house or condo. CLOSING COSTS WH N BUYING A HOME IN WINNIPEG LEGAL EXPENSES $1000-1250 The basic legal fees for purchasing a home run around $1250. something like $399 or $449, but that's the basic fee. There will be additional expenses on top of that, so you can expect to budget around $1250. Now, many lawyers will quote ... PROPERTY TAXES Depending on the time of year you take possession, you may have to pay the remaining taxes for that year. In Winnipeg, our taxes run from Jan to Dec, and are paid in June. What this means, in short, is that if you take possession after June, you will most likely have owner has paid up the taxes for the entire year. If you take possession before June, you may actually get a refund from the current owner. The joy this brings will be short-lived, however, as you will then be responsible for the full tax bill on June 30th.So depending on WHEN you take possession, these taxes could form a major part of your overall expenses. pay a portion of the taxes. This is assuming the current Between $1000 - $3000 LAND TITLES TRANSFER TAX: LARGEST OF THE CLOSING COSTS This one is a real beauty and easily the biggest part of the closing costs. Every sale of a house or condo, whether a re-sale or brand new, is subject to this tax. The kicker is that the more expensive the home, the higher the tax. $90,000 HOME will cost you $150,000 HOME $200,000 HOME will cost you will cost you $370.00 $970.00 $1720.00 or every $1000 above this price, you can add another $20.00 for our provincial coffers. (You know, to keep our roads nicely repaired and stuff like that) So if you're up at a $300,000 house, you'll be facing a $3720.00 bill Winnipeg REALTORS® have actually been lobbying hard, for years, to try and get the Provincial Government to understand that this tax-grab is unfair. HOME INSURANCE Home Insurance is absolutely required if you are getting a mortgage, and of course highly recommended in any case. This is where houses and condos are different, because in the case of a house, you need to insure the building as well as contents, and your personal liability. In condos (high-rise apartment style) you only insure the condo improvements and your liability, as the building itself is usually insured vie your condo fees (and thru the condo corporation). House Insurance ANSURANCE BUDGET BETWEEN $500 to $1000 In any case, with a house, you should budget between $500 to $1000, and in cases where the home is more expensive, you'll be looking at more than that. Contact an insurance broker to give you a quote. (If you need one of those, I can refer you to a good insurance broker in Winnipeg) Condo Insurance EXPECTED COST $250 to $300 For condos, your expected cost should be around $250 to $300 (for high-rise condos), but for bare-lands condos you will need to budget more along the lines of what a house would cost. MORTGAGE INSURANCE NOT REQUIRED. This is a type of Life Insurance that many lenders try to push on the home buyer. I have some rather strong opinions on this, please read the article "Mortgage Insurance or Life Insurance: which should you get?" rent Emplerment tistrey Amptoyer t R R ce Of course, the buyer needs to be aware of moving costs, and other incident expenses. Housing Register number: Remax Performance Realty Bo Kauffmann. 942 St Mary's Rd. Winnipeg, MB R2M 3R5 Buying or Selling • Bo Knows Homes & Condos Reman Performance Realty e-mail: [email protected]