Hidden Costs

Up-front costs are part and parcel of buying a home. It's wise to budget another 3% to 4% of the price of your home for such additional expenses as:

• House inspection fee.
• Mortgage insurance application fee for high-ratio mortgages.
• Appraisal fee (hired by the mortgage-lending institution to ensure the property meets its standards).
• Land survey fee.
• Legal fees and disbursements.
• Closing or adjustment costs (property /school taxes, utility bills).
• Property land transfer tax (a one-time tax based on the purchase price).
• Property insurance (for coverage against fire and other standard risks).