1. Down Payment: This is any amount greater than 5% of the purchase price of the home.
Anything less than a 20% down payment and you will have to get mortgage loan
insurance.
2. Deposit: This is due when a
contract of Purchase and Sale is written and accepted. This deposit forms part
of your down payment with the remainder of the down payment due at closing.
3. Mortgage/Application
fee: There can be some fees involved with
applications and or mortgage fees, but they are quite rare and will be
explained to you before you move forward. And they are usually due to a tough
situation where conventional lenders cannot help you.
4. Appraisal Fee: In order to
complete a mortgage loan your lender may ask you to do an appraisal and this
will usually run between $250-350 + tax, but it can vary according to the
location and property type.
5. Mortgage Loan Insurance: If you
make less than a 20% down payment, you have a high ratio mortgage. Mortgage insurance lets you buy a home with a
minimum of 5% down. This insurance
protects the lender by ensuring that they are paid out by the insurer if the
borrower defaults. This amount is a % and based off the down payment and
mortgage amounts. Expect to pay at least
a few thousand dollars if you have a minimum down payment.
NOTE: This is not a fee that is charged up front, standard practice is to add
it to the mortgage amount. And you only have to purchase it once for the life
of your mortgage.
6. Home Inspection Fee: It is
recommended that you have a property inspection for the property as a condition
of your Offer to Purcahse. This cost is usually around $500 for a single family
home and $350 for a strata condo unit. The inspection looks at all the
components of the home and gives you an idea of the condition of the home.
7. Survey (certificate
of location): This is done at the buyer’s
expense and is sometimes needed as a condition to receive a mortgage. If the
survey is more than five years old, you will need to have it updated. If the
seller does not provide it the buyer will have to pay. The cost is anywhere
from $1000 to $2000 for the survey.
8. Title Insurance: Your lawyer may suggest that you
get title insurance. Title Insurance is an insurance policy for the benefit of
the lender only, and it's bought at the solicitor at closing. It costs roughly
$200-$300.
9. Property Transfer Tax: This tax
is 1% on the first $200,000 and 2% on the balance. First time home buyers are
exempt from this tax if the purchase price is less than $425,000. There is a
partial exemption on amounts between $425,000 and $450,000, however at $450,000
or above the full tax is payable.
NOTE: PTT has to be paid in cash at closing - it can't be added into the
mortgage unless you make a smaller down payment.
10. Water tests: The potability of
the water should be tested if the home is on a well system. This will ensure
that the quality and supply is adequate. This costs is usually between $50-$170
and can be negotiated into the Contract of Purchase and Sale.
11. Septic Tank: If the home has a septic tank, it should be professional inspected to
make sure the components are in good working condition. The cost is usually
$250-$350 and can be negotiated into the Contract to Purchase.
12. Status Certificate
(Condo): This certificate outlines the financial
and legal state of the strata corporation.
The cost is up to $100.
13. Prepaid Property
Taxes and/or Utility Bills: If the seller has paid
the property taxes for the year or other costs (such as filling the oil tank),
you will need to pay the seller back. This is done at closing time when
adjustments take place.
14. Property
Insurance: The lender will require that you have
contents and property insurance to cover the cost of replacing the home in case
of loss. Speak to a home insurance company for costs, they average around
$400-$800 depending on the home, location, riders, etc… You will need to have
this in place at 12:01am closing day to cover you for loss.
15. Legal fees: Vary depending on which
lawyer/notary you use, as well as what work is required from them. Expect to
pay at least $700+ for a home purchase (less for a mortgage renewal or
refinance).
16. GST: This is the 5% provincial tax cost plus the 2% transitional tax, which
is on the purchase price. There are
refunds of the gst amount up to $350,000 on a new home. The rebate is 36% of
the GST on any price up to $350,000 which equates to 1.8% of the purchase
price, with a max rebate of $6300 at $350,000. Between $350,000 and $450,000
the rebate decreases to zero, (for every $10,000 increase in price, the rebate
is $600 lower). Over $450,000 there is
no rebate.
To another note, my second World Record I completed in 2011. The record is for 8hrs of stepups and I completed 8898 stepups in that period.. Click here to link to the Guinness World Record webpage with my record.
