GETTING PRE-QUALIFIED FOR A MORTGAGE IS VERY IMPORTANT.
Getting a mortgage is an important and rather daunting task. Getting pre-qualified for a mortgage makes it easier for you to purchase the home of your dreams. Make sure you have a commitment on paper from your bank or mortgage broker. (Many people scramble at the last minute because they think they are qualified and the bank has done a very quick "off the cuff" estimate. Make sure they've done a full financial disclosure and credit check).
Once qualified you will know:
- Exactly what you will pay monthly and can budget
- Exactly what you can afford (and not fall in love with the wrong house!) down payment amount, where it can come from
- Closing costs approx. 1.5% to 4% of purchase price (according to CMHC)
- If you're a first time buyer you may qualify for a program that may afford more home for your money and a better lifestyle!
Ultimately it saves all of us time in finding the right property for you!
Call me if you'd like me to get you in touch with an excellent mortgage broker who can save you time and legwork by shopping all financial institutions (lenders) for you.
DOLLARS & CENTS OF HOME BUYING
The cost of buying a home involves many aspects including a house inspection fee, title insurance, land transfer tax, adjustment costs, mortgage or life insurance, moving costs, set up costs, etc.
Title Insurance can be purchased to protect the Lender and/or Buyer against any defects resulting from title irregularities, survey flaws, title fraud, unregistered easements and other conditions that could exist at the time of purchase.
It also provides coverage for any existing by-law violations (like a building being too close to a sidewalk or other property, or a driveway being too wide), encroachments, legal rights of access and other title-related problems that could devalue the property.
LAND TRANSFER TAX
You will pay a one-time provincial tax based on a percentage of the purchase price of the property, which is calculated on a sliding scale. For example, if you purchase a property for $260,000 in Ontario, .5% is charged on $55,000, 1% is charged on $55,000 to $250,000, while the $250,000 to $400,000 range is taxed at 1.5%. Your total tax bill will add up to $2,375. Your lawyer pays it to the government on the closing date.
Quick LandTransfer Costs Calculators Formula
- $0 - $55,000 Cost of Home x .005
- $55,000 - $250,000 Cost of Home x .01 minus $275
- $250,000 - $400,000 Cost of Home x .015 minus $1,525
- $400,000 + Cost of Home x .020 minus $3,525
- (Single Family Dwelling/Duplex)
For more info please visit Ontario Ministry of Finance Calculating Land Transfer Tax
LandTransfer Costs Examples
|Cost of Home
||Total Land Transfer Tax