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Home Purchase Closing Costs in HRM
When buying a house the main focus is often the price of the house and deposit but there are numerous additional costs that, as a first time homebuyer or even ‘new to the province’ buyer, you may not be aware of and most of these are paid to the lawyer on closing.
Deed Transfer Tax – This tax of 1 ½% (may vary outside HRM) of the purchase price is the cost of transferring the deed from the present owner to purchaser so for example a $100,000 property will be $1500.
Municipal Tax Adjustment – Municipal Taxes are paid in advance so on the date of purchase and the taxes are adjusted to the day of closing and depending on when the closing date is, the amount paid in advance by the previous owner is reimbursed. For example if the taxes were $2300 (approx $6.30/day) for the year and the previous owner had paid six months in advance an there were 35 days left in the six months you would pay $220.50 (35x6.30).
Fuel Adjustment – If the property you are purchasing is oil heated, the oil tank will be topped up and you will be required to pay for a full tank of oil. Make sure you check that the tank is full on your pre-closing inspection.
Legal Fees - In Nova Scotia, a lawyer is normally required to complete the sale and make all the adjustments and disbursements. These legal fees can be $600-$900 and the disbursements of $600 and over for an average home of $300,000.
Mortgage Application Depending on if there is and appraisal and the amount mortgaged can vary from $250 to $500 to the lender.
Other Related Costs
Power Hook Up $24 plus possible deposits that may vary
Gas Hook Up $35 for properties with existing gas lines
or $500 deposit for a new hook up
Telephone Varies
Cable Varies
Mortgage application – Paid to the lender such as the bank if your mortgage is over 75% of the value of the property can be $300/$425
