Buying your Home
We understand that first time home buyers can become frustrated and confused when it comes to the home mortgage financing process. We're here to guide you every step of the way. We are more than just application processors, like at the banks - we are mortgage specialists!
- Find out which area you would most likely buy in.
- Determine your approximate price range.
- Consider a maximum monthly mortgage payment.
- Consider what features you want in a home.
- Determine how much you can put towards the downpayment (minimum is 5%).
- Check out some books or web sites to get a feel for the home mortgage process.
Communication is the key here and we take pride in that. Many house purchases go awry because buyers didn't know they still had some things to take care of before closing, like getting documents to their lawyer, obtaining home insurance and providing additional financial documents to the mortgage company or lender.Banks will not take a proactive role to assist you with these final important steps to a successful closing - again, this is where at mortgage broker from Mortgage For Less can help. We want you to be so happy with our service that you'll be a client for life!
Typical Costs of Home Buying
Rule of thumb estimate:
First-time home buyers often forget to budget for closing costs. Use 2% of the purchase price. That would work out to $4000 on a $200,000 purchase price.
Costs to Expect
Land Transfer Tax:
All buyers of property pay this once and new homes are exempt from this. Budget about 1% of the purchase price. Look into your local city tax charges - some cities have additional land tax.
Your lawyer will charge you on the closing date for registering the mortgage and for acting on the purchase. First-time home buyers often misunderstand these costs, so it's important to ask for the total costs including the disbursements. Budget approximately $1000 - $1500.
Home Inspection and Appraisal:
These are fees to make sure the house is in good physical condition. The appraisal is to assure you and the bank that the price you have decided to pay for the home is in line with neighbourhood market values. Budget approximately $500.
PST on CMHC Mortgages Only (less than 20% downpayment):
Ontarians now pay 8% tax on insurances, and this is applicable on CMHC insured mortgages. Budget approximately $300-$500.
Interest, property tax and other adjustments:
Based on closing dates and the time of year, you will have to pay for various adjustments and other expenses. If the current owner has paid up two months of property taxes, for example, you will have to reimburse them on the closing dates. Budget approximately $500.
Tips & Info
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