CLOSING COSTS
There are a number of costs associated with buying a house in the Halifax area. 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 $100- $300 for disbursements such as registering the deed etc. For example: The legal fees for a purchase of a $100,000 home would be about $650 for the lawyer and $350 for disbursements for a total of $1000. Fees vary from one lawyer to another.
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 $100,000 purchase you would pay $1,500 deed transfer tax. This tax is paid on closing to your lawyer who then pays the municipality.
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. As a rule of thumb, you can count on 1/2 a year's taxes.
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.
Mortgage application fees- There are sometimes fees for applying for a mortgage and an appraisal of the property you want to purchase. If you are borrowing more than 75% of the value of the property there will be fees for sure. These fees vary but count on about $300 - $400. This is paid to the lender at time of mortgage application.
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. Typciall home insurance could cost anywhere from $400-$1000 per year.
Power and telephone hook ups- Allow for the cost to reconnect your telephone and power. Allow $75-$100 each for these.
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.
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