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!

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.

Legal Fees:

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.