Fees To Expect With a New Home
Appraisal Fee Generally Required with New Homes
An appraisal provides the lender with a professional opinion of the market value of the property. This cost is normally the responsibility of the homeowner and it can cost between $100 – $300.
Home Inspection Fee
A professional inspection of the home, top to bottom, is for the benefit of the buyer. A home inspection can cost anywhere from $300 – $400 and is well worth the investment. When hiring a home inspector, make sure the inspector has liability insurance just in case they overlook something.
Land Survey Fee or Title Insurance Fee
A recent survey of the property is usually requested by lenders. If one is not available the cost can be upwards to $1,000.00 for a new survey. In lieu of the survey most lenders today will accept title insurance which can cost considerably less.
Legal Costs and Disbursements
Lawyers and notaries charge fees for their services involved in drafting the title deed, preparing the mortgage, and conducting the various searches.
Disbursements are out-of-pocket expenses incurred during the process such as registrations, searches, and supplies.
New Home Warranty
In most provinces new homes are covered by a new home warranty program. Should the builder default or fail to build to an agreed-upon standard the fund will finish or repair the deficiencies to a maximum amount. For more information on Ontario new home warranty visit http://www.tarion.com.