House for Sale Whitehorse: How Much Does it Cost?

Buying a house for sale in Whitehorse is no small purchase. Houses come with a range of expenses both initial and long-term. Knowing if you can afford to buy is a critical first step in your journey to homeownership. After all, the last thing you want to do is stretch your budget too thin. To make the best first investment, you must determine how much you can afford to spend on the initial purchase price of a house for sale in Whitehorse. To help you get a better sense of what it costs to buy a home, we’ve compiled a list of expenses to consider before you make your first move. Follow along below to learn more.

Expenses Associated With Buying a House For Sale Whitehorse!

The Deposit

The first expense you’ll need to pay when buying a home is your deposit. The cost of your deposit will likely vary depending on the location you are looking within and the value of the home you intend to purchase. Your deposit is made when you make an offer on a property that you want to buy. This helps to let the seller know that you are serious about wanting to buy their home. It also helps to make sure that you don’t lose the home to another interested buyer. If you get the house your deposit will be counted toward your mortgage. To get a better idea of how much to save for your deposit, talk with your real estate agent.

A Down Payment

After the seller accepts your offer, it’s time to pay your down payment. Most buyers put between 5% and 20% down. However, it is worth noting that the greater the down payment you make, the more you’ll be saving down the line. A larger down payment also means no default mortgage insurance. You can think of the cost of your down payment as the initial purchase price minus your mortgage and deposit. The down payment is given to the buyer’s notary or lawyer in the form of a bank draft. Check with your legal representative to determine the necessary funds for closing and how the payment should be received.

Home Inspection

While many buyers often skip getting a home inspection done, it is not advisable to do so. A home inspection is a highly recommended process that can help prevent buyers from making a poor investment. There can be many hidden issues inside a home and an inspector can help uncover them. Most home inspections cost between $300-$500 depending on the home.

What Else Should You Include in Your Budget?

The Cost of an Appraisal

Lenders often require that a buyer has a third-party appraiser to evaluate the home’s worth. This helps the lender determine if they are providing a mortgage for a legitimate price. It also lets them know whether the buyer is paying a fair market price or not. Generally, home appraisals cost between $300-$400 but this is highly dependent on the appraiser, location, and property.

Insurance (loan, property, home, title)

Insurance, insurance, insurance. There are several different kinds of insurance that you’ll want to include in your budget for purchasing a home. The first is loan insurance. This is only necessary if you put a down payment of less than 20% on your home. Secondly, is property/home insurance. You should have enough insurance to cover the total cost of your property. Your lender will require proof of insurance before giving you the mortgage to buy the home. Lastly, is title insurance. While not required, this is a one-time fee that protects you from losses related to the property title or ownership. Ask your lawyer or agent to determine if title insurance is something you should consider.

Moving Expenses

Many buyers often forget to account for their moving expenses when creating their home-buying budget. Moving expenses include things like hiring movers, purchasing moving supplies (boxes, tape, etc), and day-of costs like food and transportation.

Land Transfer Tax

Lastly, is the Land Transfer Tax (LTT). LTT is required by most provinces and territories in Canada when you buy a home. This tax is based on the amount you pay for the property and the remaining amount on any mortgage or debt. This cost varies depending on your municipality and a few other factors.

Contact us Today!

Buying your first home can be challenging! If you’re interested in achieving homeownership in 2024 with a house for sale in Whitehorse, contact me today. I’d be happy to help answer any questions you have about buying a home. If you have any further inquiries about real estate in the area, please feel free to reach out to me! Be sure to check out my real estate in Whitehorse blog again next month for more exciting real estate content. I look forward to working with you soon!