FINDING A HOME
The forgotten costs in buying
Estimated Closing Costs On The North Shore
Approximate Legal Fees and Disbursements $1000*
Survey Certificate (if one is not available) $300
Appraisal (if required by the lender) $150
Inspection fee (not mandatory, but strongly $300
recommended if buying a detached home)
Property Transfer Tax 1% of the first $200,000
plus 2% of the balance of the
purchase price
E.g: A $365,000 home would attract PTT at this level
1% of the first $200,000 - $2,000
2% of $165,000 - 3,300 5,300
Other Fees - If your down payment
is less than 25% of the purchase price of the home, the lender will require
mortgage insurance from CMHC (Canada Mortgage and Housing Corporation).
The insurance premium, which is usually added to the mortgage, ranges
from 0.5% of the mortgage amount to 2.5% depending on the size of down
payment.
Property Tax Adjustment - In addition to the above costs, you may
be required to have cash on hand to repay the vendors for taxes they
have paid in advance (depending on possession date and how the
vendors paid their taxes). A good rule of thumb is to have enough
money on hand to pay six months of taxes. e.g. $300,000 home
Insurance - You will have to arrange insurance a few days before
possession. The annual rate for a basic policy is approximately(detached)
*These figures are an estimate only. They are subject to change and it is recommended that you consult your lawyer for confirmation of your total costs. I have not tallied the above as you should determine which will apply to your purchase. |