Startup costs: have you thought about them?

Did you know that when buying a property, you must have cash on hand to cover closing costs? Indeed, the down payment and mortgage payment are not the only costs to consider at the time of purchase.

Closing costs should not be taken lightly; you must therefore be able to rely on sufficient funds. Several mortgage lenders will even ensure that you have these funds in your possession before granting you a loan. The mortgage loan is calculated based on the value of the home and cannot be used to cover closing costs.

Here are some common closing costs:

• Property inspection and appraisal
• Underwriting by the mortgage insurer, if applicable, as well as the premium taxes
• Notary fees
• Settlement/adjustment charges indicated by the notary (electricity, heating, municipal and school taxes, equipment rental contracts, etc.)
• Land transfer tax (welcome tax)
• Moving costs
• Hook-up fees (phone, electricity, etc.)
• Improvements (painting, curtains, etc.)