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.
For more information regarding your mortgage approval, feel free to contact us.