Closing costs when buying a home in Sackville and HRM
A plain-language look at the costs on top of your down payment when you buy in Sackville, including HRM's 1.5 percent deed transfer tax.
Your down payment is the big number, but it isn't the only one. When you buy a home in Sackville, you're buying in the Halifax Regional Municipality, and a few costs come due at or before closing.
Deed transfer tax
HRM charges a deed transfer tax of 1.5 percent of the purchase price. On a $400,000 home that's $6,000. Your lawyer calculates it and pays it when the deed is registered at the Registry of Deeds, which has to happen within 10 days of taking title.
Legal fees and disbursements
You'll need a lawyer to handle the title search, mortgage documents and registration. Ask for a quote early so there are no surprises.
Home inspection
Most buyers make their offer conditional on a home inspection. If the home is on a well and septic, budget for water testing and a septic inspection too.
Property tax and adjustments
HRM property tax is based on your assessed value from the Property Valuation Services Corporation (PVSC) multiplied by the tax rate for your area. At closing, your lawyer adjusts for any taxes the seller has already paid for the time you'll own the home. HRM bills twice a year, with payments due at the end of April and October.
Mortgage-related costs
Depending on your down payment, mortgage default insurance may apply. Your lender or mortgage broker will walk you through it, along with any appraisal fee.
Moving in
Don't forget insurance (your lender will ask for proof before closing), utility hook-ups and the move itself.
My free Halifax home buyer's guide covers each of these in more detail. Or book a call and I'll help you put real numbers to your plan.
This post is general information, not legal, tax or financial advice. Speak with a lawyer, accountant or mortgage professional about your situation.