Learn about all of the unexpected costs of buying a home

Prepare your finances

If you are a first-time buyer in Guelph, then the first thing is to get some sound advice from a qualified professional, like one of the Mortgage Guys regarding exactly how much your dream home is going to cost you. If this sounds cynical, you’ll understand why as we go along.

Naturally, when you first set eyes on a potential home you will look at the general condition, which may look great from the outside, but what lies below that glittering surface? As a Guelph first-time buyer, if you don’t have a property inspection, you could remain unaware of foundation cracks, mold or structural damage from a pest infestation. A usual residential property inspection of a single home will cost a few hundred dollars and provide you with a report of the results.

Lawyers and dollars

Mention the term lawyer or legal and immediately the dollar signs start flashing! Again, as a first-time Guelph buyer have a friendly word with your mortgage broker before taking any action. However, at the end of the day, you will require the services of a property lawyer or notary for reviewing the purchase-sales agreement. The lawyer will also determine that the title of the property is free from encumbrances, that the disbursements are correctly assessed, as well as co-coordinating the mortgage instructions with the lender.

This is all going to cost you another few hundred dollars; so, be prepared and talk to the Mortgage Guys first.

Title protection

As a first-time buyer in Guelph, you want to be sure when buying a property that you also legally purchase the right to own the land. For this, you need insurance coverage, for any costs that could be incurred in the event of your ownership being challenged or future problems occurring such as rights of way and neighbour encroachment! Your mortgage broker can explain it and help ensure you obtain the right policy to cover any future issues. It’s a one-time premium, based on the value of your home!

In addition to the above there is the question of land transfer tax (LTT) or Property Transfer Tax, which can vary according to the purchase price and area.

Is it all worth it? For a first-time buyer in Guelph there is nothing like the sensation of owning your first home, but speak to the Mortgage Guys first!