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How to Budget for Closing Costs

Posted by Kirby Cox on Thursday, May 14th, 2015 at 9:46am.

A financial area that homebuyers often forget to budget for is closing costs. Whether you're selling or buying Northwest Calgary homes, there will be certain costs associated with the finalization of the transaction that you should be prepared for. This is a brief rundown, and just a guideline, your REALTOR® or mortgage broker can provide you with more exact numbers. 

For Buyers: 

Costs can range from 1.5 to 5% of total purchase price, excluding down payment. For example, a purchase price of $250,000 would yield:

• Inspections: $400-$500

• Mortgage application (could be waived) $200-$400

• Mortgage insurance $2000

• Legal fees $900+

• GST (for new homes only) - varies

• Home and content insurance $450

• Moving and/or storage $500 

For Sellers: 

Costs can range from 1.5 to 5% of total sale price. For example, a sale price of $250,000 would yield:

• Real estate commissions - negotiated

• Unpaid homeowner fees - varies

• Legal fees $700-$1000

• Real property report (new) $500-$700

• Real property report (updated) $250-$400

• Mortgage interest adjustments $350

• Home and content insurance $450

• Moving and/or storage $500 

Kirby Cox

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