 |
|
|
|
 Costs
to Consider
Buying a home costs more than the offer you make. There are numerous other expenses that will add to the amount that you'll need to spend. This purchase price checklist outlines all the costs you can expect. Please note that they can vary by province and are subject to change.
The starting point in your calculation... if you're like most first-time home buyers, you'll need a mortgage for the majority of this! Although fees vary across the nation, it can cost you up to $2,500 depending upon whether you are re-mortgaging your existing home or buying new. As prices do vary, INVIS has negotiated with the Canadian Lawyers Network (CLN) to provide superior service at a reasonable price. Contact us or your realtor to help with this process. A tax payable
to the Provincial Government by the purchaser upon the transfer of title
from a seller. This amount is usually not expected by most homeowners.
It can be sizeable. The amount varies from province to province and is
generally a percentage of your purchase price. We can advise you.
Fees paid to
the provincial government for recording a title transfer, mortgage registration
or other instrument such as an Assignment or Lien with the local authorities.
Must be purchased
if you are buying a home for less than 20% down. A sliding fee scale applies,
depending on the percentage of the purchase price required in a first mortgage
(some minor exceptions).
Obtained by
your lawyer and required in many municipalities throughout Canada before
a property transfer can take place. This is an acknowledgement from the
building department that the property either has, or is clear of outstanding
work-orders. Work-orders are specific clean-up or fix-up requirements that
the owner is legally required to do, and which must be completed before
ownership can be transferred.
Obtained by
your lawyer at the time of sale to confirm that local taxes have been paid
up to date. If they are not up to date, the seller is required to pay them
from the proceeds of the sale. If there are insufficient proceeds, then
you may be legally required to pay the outstanding taxes. If, on the other
hand, taxes have been prepaid, you may have to compensate the seller for
them.
Provincial "New Home Warranty Program" premiums — New Homes Only! A third party
(provincial) warranty program between a builder and a buyer. With the exception
of Ontario and Quebec, membership in such a program is voluntary for the
builder. Through these programs, your home is guaranteed against defects
for at least one year. All homes with a high-ratio insured mortgage (greater
than 80% loan to value) must be enrolled in such a program.
Mortgage Appraisal and Application Fees Generally fees
may vary from $100 — $400 depending on the lender erquirements and type
of appraisaléproperty location.
A report commissioned by a property owner or purchaser, usually to verify the condition of a property prior to the "firming up" of a purchase agreement. The scope and detail may vary, but most reports outline any particular problems and associated repair costs. Unfortunately, no licensing is required, and this service is not specifically regulated other than by general consumer protection legislation. The best safeguard against inadequate work is to ask for the resume of the Inspector, or select a firm which is a member of the Canadian Association of Home and Property Inspectors (CAHPI) who stand by their work and have a rigourous ongoing training requirement foe each Certified Member. The legal written
and/or mapped description of the location and dimensions of your land.
The survey should also show the dimensions and placement on the lot of
any structure, including additions such as pools, sheds and fences. An
up-to-date survey is often required by a lender as part of the mortgage
transaction.
New to Canadian
consumers over the last few years is the introduction of title insurance
into the home buying process. Title insurance can be purchased by home
buyers to protect against potential deficiencies in a number of areas,
such as the land survey. There are numerous benefits to this product, and
you should consult your lawyer or Ann Marie today.
Some local utility companies (hydro, gas, oil) charge a fee on closing to connect new buyers up to their service. More common, however, is an extra charge on the first billing. Property Tax and Prepaid Utilities Adjustments If the previous owner prepaid property taxes or other utilities, they will be credited the prepaid portion on closing. If they paid all their taxes by April, expect a large adjustment cost on closing! If you arrange to make your mortgage payments monthly on the first day of the month, and your transaction closes after the first day of the month, your lender will charge you interest on closing to the next interest date, called the Interest Adjustment Date (IAD), when your payment cycle will commence. This can be a sizeable amount, but it is the correct interest you should pay. For example, close on June 15th, pay 15 days interest on closing and start payments on August 1st. Member, Canadian Association of Accredited Mortgage Professionals E. & O.E. |
