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Mortgage Costs

 Be sure you know the range of payment possibilities for varying amortizations, payment schedules, and types and terms of mortgages.  Your lender can provide this information so you can keep it handy while shopping for your home.

 Other mortgage costs can include: interest adjustments to cover any gap between the closing date and the first mortgage payment.  This can be avoided by exactly aligning the closing date with your first payment

Another cost which is an option is mortgage life insurance.  Before you agree though, compare your quoted premium with a term life insurance policy.

 CMHC Mortgage Insurance

 This insurance is mandatory with anywhere between 5 and 20 per cent down payment.  It is a one time cost and can be up to 2.75 per cent of your mortgage.  This amount is usually added to the principal of the mortgage but will result in your monthly payments increasing as well. 

 Home Inspection

 This is very important for re-sale homes.  The average cost is around $300.  This will vary depending on the age of the home, the size, and if it is a rural property.

 Survey

 If there is not a survey available from the Vendor, the cost of a new survey can range between $750 and $1,500.  In some cases the Lender will cover this cost. 

 Legal Costs & Disbursements

 These costs will vary but can range from $1,500 to $2,500.  Be sure to ask for an estimate beforehand.  Title Insurance is optional but becoming more popular as it covers survey issues and mortgages relating to previous owners that may have not been discharged.  The cost of title insurance can average $200 to $300.

 Property Appraisal

This may be a requirement of your lender to determine how much they are willing to lend you.  This appraised value will not be the same as the purchase price and, in fact, is often less.  Like the survey, the Lender may cover this cost.

 Home Insurance

 You must have home insurance prior to being approved for a mortgage.  Be sure to get two estimates and inquire about separate riders for jewelry, art and antiques, etc.

 Vendor Reimbursements

 There may be some adjustments made at the time of closing for such things as taxes and fuel that may have been paid in advance by the Seller.  These adjustments can often mean  disbursements to the Vendor on closing.

 Land Transfer Tax

 To calculate the amounts go to http://www.torontrorealestateboard.com/consumer_info/buying_selling/additional_costs.htm#.

 

Repairs

 Take pictures or make note of repairs you wish to make.  Discuss these with your home inspector. Most home inspectors will provide an estimated schedule for repair of common Items.

 Replacements  

 The curtains or rugs you bring along with you may not fit or the ones left behind by the seller may not match the rest of your belongings.  Set aside some extra money for these smaller things.

 Condominium Costs

 These can include parking, a status certificate, condo fees, and charges for new construction including PST/HST on chattels, occupancy fees, tax on upgrades, and warranty program enrollment fees.

 Moving Costs

 Unless you have very close friends with trucks get a couple of estimates from moving companies.  You can also DIY by renting vehicles from a rental company. 

 

information from: moneyville.ca (Alison Griffiths)

 

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