Vicki Borenstein

Affordable Condos

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Real Estate Buying Guide

Condo Buying Guide

Taxes & Rebates

Extra Buying Costs

Calculators

Buyer Beware!

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EXTRA PURCHASE COSTS
 


No Surprises On Closing

When You Plan Ahead For

Typical One Time Costs

Extra Purchase Costs
Land Transfer Tax
This is the biggest extra to be prepared for. 
These taxes, levied on properties that are changing hands,
are the responsibility of the purchaser. 

There are Land Transfer Taxes for Ontario and t
here is a second 
land transfer tax for Toronto, as well.
 

CLICK HERE TO VIEW THE LAND TRANSFER TAX CALCULATOR & TAX REBATE INFO

CMHC Fees
The Canada Mortgage & Housing Corp. is required to insure all mortgages
that have less than 25 % down payment (also called high ratio mortgage).
The insurance rate is) 0.5 % to 3.75 % of the loan depending on the down payment.
The insurance can be added to principal mortgage amount or paid at closing. 

Mortgage Brokers Fees
A fee, usually payable at time of closing, may be charged by a mortgage broker
to arrange a mortgage on your behalf. Occasionally mortgage brokers may also
charge an application fee. Be sure to ask your broker to clarify this ahead of time. 

Legal Fees
Your lawyer is an integral part of the buying process and in addition to his or her fee,
you will have hard cost “disbursements” which are costs involved in conducting a
title search and drawing up the title deed. 
Sometimes legal fees charged by the lender
can be saved, if your lawyer draws up the mortgage. In that case you would pay your lawyer
to prepare and register the mortgage. 

Adjustments
Adjustments include property tax adjustments, utility bills, maintenance fees
and interest adjustments. (An adjustment takes place when the seller has already
paid for something in advance and wants to be credited for the unused portion).

Home Insurance
You usually cannot close your property without home insurance.
The mortgagee must be notified of the policy and if it's a condominium,
the association must be notified. 
Basic homeowners insurance can cost upwards of $400. 

Home Inspection (optional)
A home inspection is optional, but the peace of mind in knowing exactly what
you are getting when you buy a home can be well worth the fee.
The cost is approximately $500 + HST paid at time of the inspection -
usually done within a couple of days of acceptance of the offer. 

Goods and services tax (HST)
You usually don’t have to pay HST on the purchase of a used resale home. 
However on a new home the entire purchase price is taxable.
If it is a new home costing $350,000 or less and is to be your primary residence,
 
you qualify to receive a rebate of 36 % of the GST paid - to a maximum of $8,750. 

Title Insurance
(optional)
Title insurance is growing in popularity in Canada - but what is it exactly?
Should you get it? Do you need it? 
Whether title insurance is right for you
is something to be discussed with your lawyer,
as it depends on the circumstances of your transaction.

 
Don't Forget The Obvious
Don't Forget The Obvious
Conod Charge For Extra Keys
Conod Charge For Extra Keys
Brighten Up That New Condo
Brighten Up That New Condo
 

Vicki Borenstein, 

Vicki@VickiBorenstein.com 

www.VickiBorenstein.com