he following is an estimate of the costs involved in Home Operating Costs purchasing a home and the normal operation of a home in Ontario. Costs vary from one area of the province to another so these figures should be used only as a guide.
Closing Costs
Home Inspection
A home inspection is
strongly recommended for most
residential properties and will usually be a condition of the offer. Your RE/MAX Hallmark REALTOR® can assist you in choosing your home inspector. This ranges from $350 – $500 depending on the size and value of the property.
Termite Inspection
You may wish to hire a termite inspector as well as a home inspector if you are buying in an area of the city where termites are known to be a problem. This could add $250 to $350 to the cost of your inspection.
Appraisal Fees
When you apply for a mortgage, the lender will want to see an appraisal on the property to ensure that the price you are paying falls within the accepted range of value for that type of property and that area of the city. The fee for this is usually between $250 to $350.
Land Survey
When you make an offer on a freehold property you will usually ask the Seller to provide a copy of the survey for the property. The purpose of this survey is to show the boundaries as well as the footprint of the building on the site. If there is no survey available, you may wish to hire a surveyor to prepare one at a cost of approximately $1,000
to $2,000.
Title Insurance
Title insurance provides insurance against the future costs of remedying most problems with the title on your property.
Ask your RE/MAX Hallmark REALTOR® to explain the benefits and cost of this service.
Land Transfer Tax
See Completing the Sale (page 8)
Home Operating Costs
Realty Taxes
Property owners have the option of paying their property taxes in installments over the course of the calendar year.
Mortgage companies may insist that they pay the property tax and collect it with your monthly mortgage payment.
Realty taxes range from $1,000 to $25,000 a year depending on the size and location of the property. Taxes are reassessed on an ongoing basis.
Heating
Home heating will usually be provided by natural gas, oil or electricity. Costs vary depending on the type of fuel, size of home, amount of insulation, exposure and usage.
Electricity
Costs vary greatly depending on usage, for example how many people you have in the home, the size of your home, and how many energy efficient cost measures you have undertaken (such as Energy Saver appliances. Usually billing is every second month, or you can go on equal billing and pay monthly.
Insurance
Insurance is essential for all homeowners and is required by your mortgage company before it will release funds to close the deal. Premiums are based on the replacement cost of the building and start at around $350 to $700 per year.
Water & Waste Management
Most properties in Ontario are now on water meters and are billed according to usage. As of November 1st 2008, you water bill will also include a fee for waste management.
Your waste management fee will pay for garbage, recycling, green bin, litter prevention, landfill management and other diversion programs. These utility bills will be sent about three times a year.
