When you’re purchasing a brand new condo, it’s important to know that there are additional costs to consider in addition to the price of the home. While the points below specifically addresses pre-sale condos, you should also be aware that resale properties incur additional costs such as Home Inspection Fees, Certificate of Location, Appraisal Fees, Land Registration Fees, and Pre-paid Property Taxes.
The down payment is the part of the home price that does not come from the mortgage loan. The down payment comes from your own money. Typically in BC you can buy your home with a minimum down payment starting at 5%, if you have mortgage loan insurance from Canada Mortgage and Housing Corporation (CMHC).
The deposit is paid when you make an Offer to Purchase to show that you are a serious buyer. The deposit will form part of your down payment with the remainder owing at time of closing the deal.
The mortgage lender requires you to have property insurance because your home is security for the mortgage. Property insurance covers the cost of replacing your home and its contents in case of loss.
Mortgage Loan Insurance Premium
If you make less than a 20% down payment, you have a high-ratio mortgage. With a high-ratio mortgage your lender will need mortgage loan insurance. Mortgage loan insurance lets you buy a home with a minimum down payment starting at 5%.
Legal fees and related costs must be paid on closing day. The minimum cost is $500 (plus GST/HST).
Your lender, lawyer, or notary may suggest that you get title insurance. This will cover loss caused by defects of title to the property.
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Source: Mac Marketing Solutions