The Brad Sinclair Team, Rural Real Estate-Buy, Sell, Invest.

When buying a house, your budget should factor in an additional 4% to 8% of the total purchase price to cover the various costs associated with the transaction and maintaining your new home. While the purchase price is the most significant expense, there are several other expenses that homebuyers often overlook, which can quickly add up and impact your overall financial planning. Land Transfer Tax One of the most significant hidden costs of homeownership is the land transfer tax. This tax, which is calculated based on the price of your property and the province's tax rate, must be paid in full when the transaction closes. The land transfer tax can vary significantly depending on the location and value of the property, but it's essential to factor this cost into your budget. Legal Fees Another essential cost to consider is the legal fees associated with the home purchase. These fees can vary depending on the purchase price, but they typically range around $1,800 for a $500,