What are the costs associated with buying a home?
First and foremost, you have to make sure you have enough money for a down payment – the portion of the purchase price that you furnish yourself. To qualify for a conventional mortgage you will need a down payment of 25% or more. However, you can qualify for a low down payment insured mortgage with a down payment as low as 5% or 0% down. Secondly, you will require money for closing costs (up to 1.5% of the basic purchase price). If you want to have the home inspected by a professional building inspector – which we highly recommend – you will need to pay an inspection fee. The inspection may bring to light areas where repairs or maintenance are required and will assure you that the house is structurally sound. The inspector will provide you with a written report. You will be responsible for paying the fees and disbursements for the lawyer or notary acting for you in the purchase of your home. We suggest you shop around before making your decision on which you are going to use, because f
Purchasing real estate requires expenditures you may not be familiar with, especially if you are a first-time buyer. There are origination fees, discount points, appraisal fees, credit report fees, surveys and title insurance costs. The federal government has tried to make it easy for you to compare one lender to another. The Federal Regulation Z requires lenders to disclose the APR (or Annual Percentage Rate) on loans prior to, at the time of, or not later than three days after the application. APR is the cost of your credit expressed as a yearly rate. It takes into account the interest rate, discount points, loan origination fee and certain other costs. Since all lenders are required to use the same guidelines in determining APR, this is a good basis for comparing the cost of various loan programs and lenders. When you shop for a loan, you will soon find that lenders offer many with varying terms.
First and foremost, you have to make sure you have enough money for a down payment – the portion of the purchase price that you furnish yourself. To qualify for a conventional mortgage you will need a down payment of 25% or more. However, you can qualify for a low down payment insured mortgage with 0% down. Secondly, you will require money for closing costs (up to 1.5% of the basic purchase price). If you want to have the home inspected by a professional building inspector – which we highly recommend – you will need to pay an inspection fee. The inspection may bring to light areas where repairs or maintenance are required and will assure you that the house is structurally sound. Usually the inspector will provide you with a written report. If they don’t, then ask for one. If you are proceeding with a conventional mortgage you will have to provide the lender with a property appraisal – you will need to pay an appraisal fees. An appraisal is a process which determines the market value of
First and foremost, you have to make sure you have enough money for a down payment – the portion of the purchase price that you furnish yourself. To qualify for a conventional mortgage you will need a down payment of 25% or more. However, you can qualify for a low down payment insured mortgage with a down payment as low as 5%. Secondly, you will require money for closing costs (up to 2.5% of the basic purchase price). If you want to have the home inspected by a professional building inspector – which we highly recommend – you will need to pay an inspection fee. The inspection may bring to light areas where repairs or maintenance are required and will assure you that the house is structurally sound. Usually the inspector will provide you with a written report. If they don’t, then ask for one. You will be responsible for paying the fees and disbursements for the lawyer or notary acting for you in the purchase of your home. We suggest you shop around before making your decision on who you
(UP) First and foremost, you have to make sure you have enough money for a down payment. To qualify for a conventional mortgage you will need a down payment of 20% or more. However, you can also apply for a “no down payment” (0%) insured mortgage, or insured mortgages with 5%, 10% and 15% down payment. Secondly, you will require money for closing costs (typically around 1.5% of the basic purchase price). These closing costs typically include fees and disbursements payable to the lawyer or the notary acting on your behalf in the purchase of your home, various adjustment costs such as property taxes and utilities, provincial sales tax on the mortgage insurance premium for insured mortgages, and land transfer tax fee. Land transfer tax in Ontario is calculated in the following way. Up to $55,000 0.5% of the total property value From $55,000 to $250,000 1% of the total property value, less $275 From $250,000 to $400,000 1.5% of the total property value, less 1,525 From $400,000 up 2% of th
