How Much $ Do You Really Need To Buy Real Estate

How Much $ Do You Really Need To Buy Real Estate

The most important details when buying real estate are the down payment, legal fees, and land transfer tax. Down payments are grouped into brackets of maximum approvals, with up to a purchase price of $500'000, buyers need a 5% down payment, up to a purchase price of $1'000'000, buyers need a 10% down payment, and above a purchase price of $1'000'000, buyers need a 20% down payment. Legal fees can range from $850-$1500 depending on the complexity of the deal, while land transfer tax can range from $850-$1500 depending on the complexity of the deal. The government charges a land transfer tax when buying a property, which is usually based on the purchase price. First time home buyers are eligible for a rebate on this tax, and the city of Toronto charges a Municipal Land Transfer Tax.

Buyers should also consider having Movers, Cleaners, and Handyman on speed dial to keep their stress as low as possible. Additionally, it is important to keep an additional 1.5-2% in the bank to cover "closing costs".