You would have heard so many people say that rent in Canada is the same as monthly mortgage payments. But what they don’t know is that buying a house in Mississauga in today’s economy is an expensive affair. Then there’s hidden costs that most buyers don’t know about until closing. 

Hidden costs of buying a house in Mississauga:

1. house inspection fee

2. Appraisal fee

3. Land survey 

4. Land transfer tax

5. Legal fees 

6. Mortgage default insurance

7. Mortgage life insurance

8. Property tax

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Here’s a list of hidden costs you’ll be paying when buying a house in Mississauga: 

Some of these costs can be waived off for first-time house buyers. If you’d like to verify whether you qualify for first-time house buyer benefits in Mississauga, please reach out to me today. 

1. House inspection fee

Cost : $300 – $1,000 

House inspection is a must-do for all prospective house buyers in Canada. A house inspector will uncover any physical problems with the property including ceilings, windows, walls, and heater. Based on their report, you can negotiate a good deal for you.  

2. Appraisal fee

Cost : $275 to $500

Mortgage lenders require you to provide the appraised value of the house. If approved, some lenders waive off this fee. 

3. Land survey 

Cost : $1,000 to $2,000

This expense is only for house buyers interested in purchasing freehold properties. It calculates your property’s boundary, so there’s no problem with neighbours in the future. Also, many mortgage lenders in Mississauga will ask you for a land survey report. 

Check Out : Houses For Sale Under $750K in Ontario

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4. Land transfer tax

Cost :  0.5% to 2.5% of property sold value

In Ontario, your land transfer tax is calculated using a multi-tiered system. House buyers in Toronto have to pay double land transfer tax, half of which goes to the City of Toronto. First-time house buyers receive a partial or complete transfer tax amount as tax credit.

Cost :  $900 to $2,000

You’ll have to hire a real estate lawyer or notary to review your agreement of purchase and mortgage approval documents. Lawyer fees are higher in cities than smaller towns. 

6. Mortgage default insurance

Cost : 2.8% to 4% of total mortgage value 

If you’ve paying less than 20% down payment for your house or condo in Mississauga, you’ll have to get a default insurance. It is included in your monthly payments. Organisations in Canada that offer this insurance include Canada Mortgage and Housing Corporation, Canada Guaranty, and Genworth Canada. 

Check Out : Houses For Sale Under $1 Million in Ontario

7. Mortgage life insurance

Cost : Varies depending on your insurance policy 

Not a compulsory expense but a necessary one. In the event of your death, your family will receive funds from the insurance agency. It’s cheaper compared to a regular life insurance policy. 

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8. Property tax

Cost : Varies 

Every year, house owners in Mississauga have to pay property tax. You’ll have to pay the previous owner’s property tax that could be pending after sale and your share as well. 

Other costs include: 

1. Title insurance

2. Sales tax

3. Moving costs

4. Renovations

5. Landscaping 

6. Utilities 

7. Condo fees 
Please reach out to me today if you’re looking for any specific questions about buying a house in Mississauga.

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