It is typically more expensive at the lawyers to buy a house for sale in Saskatoon and area than it is to sell a house here. One of the main reasons for this is the Land Title Transfer. Even if you have a lawyer in the family who will do your paperwork for free the purchase will still cost you as everyone must pay this fee and there is no negotiating on it.
The cost to register the transfer of Land Titles at ISC is $3.00 per thousand of the value of the property. So, for example, if your house is worth $200,000 the land title transfer fee will be $600. It is important when you buy a house for sale in Saskatoon and surrounding area that you understand all of the costs associated with this purchase. Often people mistakenly assume that the only money they will need upfront when buying a home in our real estate market is the down payment, but this is not the case. You will need to have additional money set aside for the closing date (before possession) to cover these costs.
Your largest initial expense is the deposit that is given at the time of the offer. This acts towards your down payment (which is typically at least 5% unless you are investing in which case it is at least 20%). You don’t normally need to give your entire down payment as the deposit but it is up to the seller to determine how confident they are that you won’t walk away from your deposit and fail to complete the transaction. Once this deposit is paid it is held in trust at Century 21 Fusion in Saskatoon if you are using me as your trusted Saskatoon real estate agent.
Other expenses that you need to be prepared for are:
- Legal fees and disbursements
- When buying a new home (newly built never lived in) you are sometimes responsible for GST and/or PST if applicable
- Property or land transfer tax
- Adjustments (payable to the vendor such as taxes)
- Property Taxes
- Utility Payments
- If in a Condominium type of ownership, condo or strata fees
- Home inspection fees or any other ancillary service fees requested by you as the buyer (furnace inspection, appraisal fee, water quality/quantity tests for acreages)
- Mortgage broker’s fees (if applicable)
- Mortgage loan insurance premium (if less than 25% down) plus application fee
- Moving expenses
- Renovations, repairs, paint, carpeting, window coverings
- Property/Condominium Insurance
- Mortgage payments (you can do these weekly, bi-weekly, or monthly)
- Water/sewer payments
- Electricity and gas services
- Cable/telephone/internet services
- Property taxes (can go on the monthly TIPPS program through the City)