BUYERS IMPORTANT INFO!
Buying a home is one of the biggest emotional and financial decisions you'll ever make , so prepare yourself to make a knowledgeable decision . It is going to be wonderful to own your home , but are you ready for it ? This page is going to help you with some of the many questions that you may have , as a first time homebuyer.
COSTS ASSOCIATED WITH BUYING A HOME:
1 . Mortgage Loan Insurance Application Fee . If you are buying a home with less than 25 % down payment - this is called a high ratio mortgage - you may need to pay the mortgage insurance fee. This is added to the amount of mortgage by your lender or you may have to pay it in full upon closing. The insurance providers are CMHC, Genworth Canada and AIG Insurance. The amount that you have to pay depends on how much downpayment you have and how long you amortization is , and it can be as high as 6 % of your mortgage .
2 . Appraisal Fee. Your mortgage lender may require that the property be appraised , at your own expense . This cost can be anywhere from $ 250 to $ 400 .
3 . Deposit . This is part of your down payment , that has to be paid at the time of Offer to Purchase . The amount that has to be paid it can be anywhere from a few hundreds to a few thousands of dollars , depending on the location of the property and the seller's request . Once your offer was accepted by the seller , you cannot get the deposit back , unless you are denied the financing by your lender or wrong findings with the property at the time of inspection .
4 . Down payment. This is a percentage of the purchase price that you provide at time of buying . You should be able to provide proof of the amount being in your bank account , usually 3 months of bank statements .
5 . Estoppel Certificate Fee. This applies if you are buying a condominium or strata unit .
6 . Land Registration Fees . Check with your lawyer to see what the current rates are .
7 . Property Tax Holdback. Use to reimburse the seller for pre-paid property taxes . Also , there are lenders that , in certain cases , may require a full year deposit for your taxes to , at the time of buying . You will be reimbursed at the time you sell or transfer / refinance your mortgage with a different lender .
8 . Prepaid Utility Bills. Same as no. 7
9 . Home/Fire Insurance (mandatory if you buy a single detached home).
10 . Survey or Certificate of Location Cost. If the seller doesn't have one and the lender requires an up -to -date survey, you need to get one yourself , and the price can go up to $ 2000 .
11 . Water Quality Inspection. If the home has a well - especially if you are buying in the country , an acreage for example - make sure that you have the quality of the water you desire. You may want to get the water tested.
12 .Legal Fees. Must be paid upon closing and can be anywhere from $500 to over a thousand dollars.
13 . Title Insurance.
14 . Moving Expenses.
15 . Service Hook-Up Fees. You may be required to pay a deposit for you phone and internet installation or for other utilities, such as electrical, gas etc .
16 . Condominium Fee. You may have to provide an initial deposit for your condo fees to your condo company .
17 . Renovations and Improvements.