Financing
We want to be upfront with you about where your money is going, so this section is all about the true costs of closing on your home. Knowing potential costs ahead of time will help us create a more realistic budget.
Professional Packers
Based on the staging plan, once we decide what will be staying in your home and what should be moved out it may help to hire professional packers. This can be advantageous when there is a tight moving schedule. Professional packers are efficient, and the time saved can allow you to focus on other things, but on the other hand, not everyone likes strangers touching their things and the cost depends on the size of your home.
We recommend Sparkly Solutions, who will do an in-person walk-through to see what they are dealing with and then put together a quote. They bill by the hour and a team of two is $100/hr typically working a 6-hour day, plus materials.
They offer decluttering, organizing, packing, and moving coordination services which may also include unpacking and setup. They work with Bumblebee Moving & Storage as their movers but are also willing to accommodate your preference if you prefer a specific company. Read more about what they offer here.
If this is something you decide to move forward with let us know and we can help you set things up!
Off-site storage
If there are a lot of items you need to move out before staging and you need a place to store them, an off-site storage locker may make sense. This can cost upwards of $200 per month depending on the size and location of the locker. If it is determined that you will need one, we will help source a locker to fit all of your needs and organize the move of your belongings.
Movers
This can cost between $90-$120 an hour. Most moves 150km or less are considered local, but it will depend on the moving company you choose! The moving companies we recommend that our clients reach out to are listed below. Click on each of the companies listed below to view their websites and services!
Closing Costs
When it comes to closing on a home, there are many small/big things that need to be taken into account. Here are a few to keep in mind that are associated with closing.
Land Transfer Tax
The good news is you don’t pay this when selling your home! Buyers will pay this tax when buying your home.
Legal Fees
There are two parts to this:
The fees your lawyer will charge to help close the transaction range from $1,500-$3,500 (plus disbursements) depending on the value of the home.
“The Statement of Adjustments” document that your lawyer will put together to highlight and balance all the funds needed between the buyer and seller. If you have paid in advance for any utilities or taxes, you will be paid back through the statement of adjustments as it relates to the closing date. We recommend budgeting around $1,000 for this.
Bridge
It’s important to note that if you are selling a property and buying your new home, you may require bridge financing. This applies in situations where the closing date for the home you’re purchasing is before the closing date of the home you’re selling, leaving you without a down payment for the new home because it’s tied up in equity in your current home. Bridge financing is the tool used to help borrowers who find themselves in this scenario.
Like any loan, a bridge loan is subject to interest – often at a rate similar to an open mortgage or a personal line of credit. While the interest rate on your bridge loan is higher than your mortgage rate (usually Prime + 2.00% or Prime + 3.00%) it will only be charged for a short period of time, before the equity from your previous home will be available to repay the loan. On top of the small amount of interest you’ll be charged, your lender will likely also charge a flat administration fee – typically between $200-500.
Mortgage
Since you are secured to your current property, you will need to speak with your insurer to figure out what to do about your current financing. If you are moving before your current mortgage is paid off, you will need to pay the remaining amount borrowed and secure a new mortgage on your new home.
Important:
Mortgage portability – can you take your existing mortgage from your current home to your new home? (only applies when you are buying a new property at the same time you are selling your old one)
Penalties – are there penalties if you break your mortgage early?
Mortgage Assumption – The mortgage would be transferred to the buyer. This make sense if you are not buying another property.
Bridge Financing – discussed earlier in this section
Insurance
You will need to reach out to your insurer to figure out what needs to be done with your current insurance policy.