What are the closing costs involved when buying a home?
First of all, make sure you have enough money in your account for the down payment. This includes your initial deposit when your offer is accepted, as well as any additional deposit you may need to pay once the offer becomes unconditional or you remove conditions. Second, you need to set aside 2 to 3 percent of the purchase price to cover costs such as: • Home Inspection – Paid prior to closing; A written report is prepared by a qualified inspector who assesses the property for any defects or poor maintenance. It helps to let you know what repairs and maintenance are required, and if the property is structurally sound. • Appraisal – Paid prior to closing or typically covered by the insurer if the mortgage is insured; A written appraisal is prepared by an appraiser usually chosen by the lender, or the insurer (CMHC/Genworth) who insures the mortgage. It is required to make sure the property is acceptable as a security for the mortgage, to determine what the property is worth based on sa
