When buying a home in Nova Scotia, many buyers focus on the sale price, mortgage rate, and monthly payments. These are obviously all important factors, but it’s just as essential to prepare for closing costs and understand what they include.
Closing costs refer to the final fees and expenses due on closing day, which are paid in addition to the home’s purchase price. These costs can vary based on the property and location but typically fall between 1.5% to 4% of the purchase price. Budgeting for these expenses in advance helps avoid those last-minute surprises.
Here are a few key closing costs to plan for:
1. Legal Fees
You’ll need a real estate lawyer to handle the paperwork, title transfer, and disbursements. Fees vary by law firm, but your lawyer will ensure all legal aspects of the transaction are secure.
2. Land Transfer Tax
In Nova Scotia, this tax is known as the Deed Transfer Tax. The rate depends on the municipality, typically ranging from 0.5% to 1.5%.
3. Title Insurance
Title insurance protects you against future issues with the property title, such as legal ownership disputes or errors in public records. While optional, it is strongly recommended and often required by lenders. It’s a one-time cost that can save you from major headaches down the road.
4. Property Tax Adjustments and Utilities
You may need to reimburse the seller for prepaid property taxes or heating fuel. Your lawyer will calculate these adjustments and include them in the final closing statement.
The goal is to move into your new home with confidence, knowing every detail is covered. If you’re planning a purchase this year, I’d be more than happy to walk you through the closing process and connect you with the right professionals.
