Hidden Costs for Pre-Construction Condo Purchases

     With the current condition of the pre-construction, it is very important to have your finances in orders before you the purchase. Unfortunately, it is not as simple as paying the advertised purchase price for your brand-new state-of-the-art luxury condo.

Lawyer Fees – Lawyers are a very necessary resource for you when purchasing a unit. They provide services to review the paperwork to check for potential errors or flaws that typically arise during these transactions. Being stingy on this front is not recommended as they provide a very useful service to save yourself many headaches during this time.

Title Insurance – This is a fee where the process is typically handled by your lawyer. The payment is typically a one-time premium for an insurance that covers the buyer from title related financial losses.

Ontario Land Transfer Tax – This is a tax applied to any purchase of a home that is a one time premium within the province of Ontario. However, first time home buyers can expect a rebate which can be calculated online through various tools.

City of Toronto Land Transfer Tax – On top of the Ontario Land Transfer Tax, the city of Toronto has its own additional tax that needs to be considered. Like the Ontario Land Transfer Tax, first time home buyers can expect a rebate as well.              

Other Costs – Utility hook ups, HST, Tarion Warranty Fees can all be expected which will all vary based on your purchase price.

These are some of the costs that pre-construction purchasers can expect to see that are normally hidden away from the common eye. Many of these will add a hefty bulk in expenses that you should really consider before making your purchase. Ensuring you are in the proper financial situation to prepare for hidden cost’s can save you a world of stress and worry without compromising your own finances. 

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