Closing costs when buying a home in Calgary,
They typically include various expenses on top of the property's purchase price. These costs can vary based on the property price, mortgage terms, and other factors.
Here are some common closing costs:
Land Transfer Tax: In Calgary, there's a land transfer tax based on the property's value. Alberta doesn't have a provincial land transfer tax, but there might be a municipal fee.
Legal Fees: Hiring a real estate lawyer or notary to handle the closing process, title search, and paperwork.
Title Insurance: Protects against issues with the property title. Some lenders may require it.
Home Inspection: Though not mandatory, getting a home inspection is advisable to identify potential issues with the property.
Appraisal Fee: If required by the lender, an appraisal ensures the property's value aligns with the loan amount.
Mortgage Insurance: If your down payment is less than 20% of the purchase price, mortgage insurance is required.
Adjustments: Reimbursement to the seller for prepaid property taxes or utilities.
Property Insurance: Often a requirement by lenders to protect the property against damage.
Moving Costs: Expenses related to relocating to your new home.
These costs can add up to a significant amount, usually around 1.5% to 4% of the purchase price. It's wise to budget for these expenses in addition to your down payment and mortgage payments. For precise estimations, it's best to consult with a real estate agent or a financial advisor familiar with the Calgary market.