Initial costs of buying a home in Nova Scotia

Here is a breakdown of all costs incurred when buying a home in Nova Scotia. Buying a home includes a number of additional costs in addition to the purchase price. 1. Home purchase price The most basic cost is the purchase price of the house itself, which depends on the location, size, and market conditions. The average home price in Nova Scotia ranges from $300,000 to $500,000, depending on location, while larger urban areas average rates higher. (e.g., Halifax vs. urban vs. rural). 2. Downpay The minimum down payment depends on the purchase price and the mortgage product. If you are applying for a permanent residence or a mortgage with the personal income of a citizen, it is as follows: Homes under $500,000: 5% of the purchase price. Between $500,000~$999,999: 10% on amounts over $500,000. Homes over $1,000,000: 20% required. Example: For a $400,000 home, the minimum down payment is $20,000. 3. Monthly mortgage payment costs Mortgage Insurance Premiums (CMHC): Mandatory if the down payment is less than 20% of the purchase price, and the premium is 2.8%~4% of the mortgage amount. Interest rates: This depends on the fixed or variable rate, your personal credit rating and lender, so you should consult with a mortgage counselor or broker. Pre-approval fee (if applicable): Some lenders may charge a fee for mortgage pre-approval, but this is not common. 4. Closing Costs The closing cost is typically 1.5%~4% of the purchase price and includes: Legal (attorney) fees: Approximately $1,000~$1,500 (title research, contract review, closure). Deed Transfer Tax: In Nova Scotia, a deed transfer tax is charged at ~1.5% of the purchase price (1.5% in Halifax). Home inspection (inspection fee): $600~$2000 (depending on home condition and inspection items). Appraisal cost: $300~$500 (upon lender request). Title Insurance: $250~$400 (t(title insurance). Land surveying: $500~$1,000 (if not already provided). Other adjustments: Adjustments for expenses such as prepaid property taxes or utilities. 5. Ongoing Expenses Ongoing expenses after buying a home: Property taxes: Approximately 1%~1.5% of the annual home appraisal value. Home insurance: Approximately $600~$1,200 per year. Utilities: Heating, electricity, water, and sewer costs vary depending on the size and location of your home. Maintenance and repairs: Experts recommend budgeting for maintenance costs of ~1%~3% of your home's value per year. 6. Optional Expense Real Estate Agency Fee: Generally borne by the seller, but there may be a cost if the brokerage fee between the buyer agent and the seller's agent does not match. Remodeling and furnishing: Costs vary depending on the condition of the home and personal preferences. Moving Expenses: $1,000~$5,000 depending on the distance you are moving and the amount of belongings. $400,000 Home Example (in Halifax) Cost Item Amount Home Purchase Price $400,000 Minimum Down Payment (5%) $20,000 Mortgage Insurance Approx. $13,680 (3.6%) Title Transfer Tax (1.5%) $6,000 Legal Fees Approx. $1,200 Home Inspection Approx. $500-$2,000 Title Insurance Approx. $300 Closing Expenses Total (Estimated) Approx. $8,000~$9,500 Initial Total Costs Approx. $28,000~$36,500 Understanding these costs will help you better prepare and budget for your home purchase in Nova Scotia.