cost of buying
The financial aspects of buying a home do not need to be confusing. There is nothing more frustrating than falling in love with a home only to discover that it is more expensive than you can afford.
To avoid disappointment (and a lot of wasted time and effort) make sure that your finances are in place as soon as possible.
Most lending institutions will only allow approximately 30% of a person's income to support a mortgage. They will usually not allow more than approximately
40% of income to support a mortgage together with other debts. The amount of money you qualify for, plus the amount of cash you can put down, will equal the amount you can afford to spend on a home.
The following are Customary Costs when purchasing a home. In certain circumstances, additional costs may apply. When you buy a home, you will be asked for a down payment, usually between 5 and 25% of the total price of the property. You might also have a number of other fees and expenses to pay.
|
Expense |
Paid |
|
Mortgage Application and Appraisal Fee |
At time of application / $ 300.00 |
|
House Inspection (optional) |
At time of application / $ 350.00 |
|
Down Payment |
At time of application / 5% - 25% |
|
Legal Disbursements |
Closing / $ 1,000.00 |
|
Deed and/or Mortgage Registration |
Closing / $ 250.00 - $ 300.00 |
|
Property Survey |
Closing / $ 300.00 - $ 500.00 |
|
Land Transfer Taxes |
Closing / 1% - $ 200,000 / 2% there after ~ |
|
Property Tax Adjustments |
Closing / ** |
|
Fuel Adjustments |
Closing / ** |
|
Mortgage Insurance |
Closing / 0.5% - 2.75% ^ |
|
Title Insurance GST
|
Closing / $ 850.00 Closing / Where applicable on new builds *
|
^ For high-ratio mortgages due to down-payments of less than 25% of purchase price.
* If less than $ 450,000 CDN, may be eligible for a rebate.
** Prorated from Date of Purchase
