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Buying a house is a significant milestone and probably the single largest purchase you will make in your lifetime. While most mortgage providers, including JN Bank finances up to 95 per cent of the purchase price, there are other fees and incidentals that you will need to pay upfront, which could amount to a hefty sum.

In many instances, you may need to find as much as 25 per cent of the purchase price of the house.

Here is a breakdown of the fees you will need to pay when purchasing your dream home:


Among the associated fees is the deposit or down payment, which is normally required by vendors upfront, in the home purchasing process.

If you’re interested in purchasing a home for $11 million, which falls in the mid-income market segment, you’ll need to come up with a deposit of at least five per cent, or approximately $550,000, while some vendors request as much as ten per cent of the purchase price.

Closing Costs and Escalation Fees

Additional fees to contemplate include the closing costs, escalation fees, and legal costs.

Some buyers are aware of the deposit, but many are unaware that in some instances, they will also need up to 25 per cent cash, up front, to cover the cost of a series of professional and other fees.

These costs include approximately three to five per cent for the closing costs and five or ten per cent for escalation fees.

Legal Fees

Then, there are also: the legal fees; transfer tax and stamp duty, which could amount to an additional four per cent of the going purchase price.

On that basis, someone purchasing a home valued at $11 million, could be required to pay about $2.75 million at five per cent, for the deposit; or $3.3 million, at 10 per cent for the deposit, when taking into consideration all the associated costs.

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