The Key Advantage Team is here to assist with every one of life's transitions and provide a fresh start in a new space to cultivate and inspire everything that embodies home. For Buyers, this means honing in on areas and neighbourhoods that dial into your lifestyle and needs, whether that is looking at schools, amenities or opportunities for leisure.
Immediate upon acceptance of your Agreement of Purchase and Sale, you will be required to submit a deposit cheque which will be held in trust by the Listing Broker until closing (or until non-fulfillment of conditions). This deposit cheque is usually five percent (5%) of the sale price, depending on circumstances and closing date. The cheque must be deposited by the Listing Broker within two banking days after acceptance of the offer, whether it is a conditional or firm transaction. Arrangements can often be made with a financial institution for a short-term loan or line of credit if necessary (e.g. you have money tied up in term deposits, RRSP’s, or the equity of your current home).
HOME INSPECTION FEE
Charges for home inspections are usually around $325 to $450 and up.
Your lender, in most cases, will require an up-to-date survey showing the existing location of fences, buildings and structures; although title insurance is now an option. Even if you do not require a survey for your lender, it is advisable that you have one prepared to ensure that the property does not contravene municipal zoning by-laws and regulations, and that there are no major encroachments, etc. Ask the Seller to provide an up-to-date survey in your Offer to Purchase. A survey costs approximately $750 to $900 and up.
STATUS CERTIFICATE (Condominium properties only)
Condominium Corporations are required to provide a status certificate for a fee of no more than $100. The Status Certificate contains important information for the Buyers of a condominium unit:
If your mortgage loan is not insured, your lender may require a property appraisal at your expense. A basic appraisal for mortgage purposes will probably cost between $250 and $400. The actual cost should be confirmed as it may vary with location and complexity.
Ask your Sales Representative to provide you with information on Title Insurance. It is often used when there is no survey, or for mortgage re-financing or minor title problems.
Premiums range from $200 to $400.
WATER QUALITY & QUALITY CERTIFICATES
If you are buying a home with well service you may incur a fee between $50 and $100 to certify the quantity and quality of water.
MORTGAGE LOAN INSURANCE AND APPLICATION FEE
If you need a high ratio mortgage (more than 75% of the sale price of the home), your lender will require mortgage loan insurance provided by CMHC or a private company. The insurance will cost between 0.50% and 3.75% of the amount of the total mortgage (additional charges may apply) and can be incurred in the mortgage. The application fee will range from $75 to $235 depending upon how the lender processes your application. Consult your local lender for further details.
MORTGAGE BROKER’S FEE
A Mortgage Broker may charge you a fee to find you a lender.
BALANCE OF DOWN PAYMENT
This is the difference between the total amount of your down payment and the deposit submitted at the time of the Offer.
GST/HST (If Applicable)
The 13% HST applies to new housing. However, there is a rebate to a maximum of 2.5% if your home costs less than $450,000. There is NO HST on resale housing unless the home has been substantially renovated, and then the tax is applies as if it were a new home.
LAND TRANSFER TAX
To calculate the Total Land Transfer Tax payable for residential properties, use the following:
ADJUSTMENTS REIMBURSED TO THE SELLER
The balance due on closing is the difference between your sale price and the amount of your deposit. How- ever, there are certain items that will be adjusted at the time of closing. You will have to repay the Seller on a pro-rated basis if some bills have been paid beyond the closing.
This insurance covers the replacement value of the structure of your home and its contents. Your lender will insist on this because your home is the security of your mortgage.
Taxes are always a certainty. If you have a high-ratio mortgage, your lender may require that you have your property tax installments added to your mortgage payments.
If you are arranging a new First Mortgage, your lawyer will receive the mortgage monies from the Mortgage Company (usually on the morning of the closing date). However, some mortgage companies use the 1st or 15th of the month as a payment date.
For example, if you are closing a deal on August 10th, the Mortgage Company would deduct from the mort- gage monies, interest from the date of closing (the 10th), to the 1st of the month (e.g. September 1st) and your payment would then commence the 1st day of the following month (i.e. October 1st) and continue on a monthly basis thereafter.
As mentioned, this is a common procedure with mortgage companies and is only for the purpose of adjust- ing the interest for a part of the month at the beginning of the mortgage. Simply be aware of it. It will not affect every mortgage as some will have payments commence one month after closing.
LEGAL FEES AND DISBURSEMENTS
Even a straightforward home purchase requires a lawyer to review the Agreement of Purchase and Sale, search the title, draw up mortgage documents and tend to the closing details.
Be sure to ask your lawyer for an approximation of the disbursement costs. Approximate costs are $600 and up.
Don’t forget the costs of a professional moving company or a rental truck if you are moving yo