Homeownership: Unveiling Additional Costs
Embarking on the journey of homeownership involves more than just the purchase price of your dream home. Prepare yourself for the various additional costs that might come your way:
- Mortgage Loan Insurance:
Essential if your down payment is less than 20%.
Premiums may be added to your mortgage payments.
Note the new minimum qualifying rate for uninsured mortgages set by OSFI as of January 1st, 2018.
- Appraisal Fee:
Lenders base loans on the property’s purchase price or market appraisal.
Cost varies depending on the assignment’s size and complexity.
- Land Survey:
Lenders may request a current survey before approving the loan.
Consider potential costs for a new survey on the property.
- Deposit:
Typically accompanies the formal offer to purchase.
- Insurance:
Proof of property insurance is required by the lender.
Coverage should match the replacement value of the house and its contents.
- Title Insurance:
Offers protection in case of title-related issues.
Generally, a relatively low-cost investment.
- Application Fee:
Some lenders pass on processing costs.
Fees vary; some lenders may waive them with other accounts.
- Mortgage Broker’s Fee:
Charged if using a mortgage broker to arrange the mortgage.
- Home Inspection Fee:
Unveils any property issues before moving in, safeguarding the buyer.
- Legal Fees:
– Savings are possible if your lawyer draws up the mortgage.
– Includes disbursements for title deeds, title search, and mortgage preparation.
- Land Transfer Tax:
– Utilize the land transfer tax calculator for Ontario and the City of Toronto.
– First-time buyers may qualify for substantial rebates.
- Harmonized Sales Tax (HST):
– Applies to newly constructed homes; partial rebates possible.
– Resale homes are generally exempt from HST.
- Other Costs:
– Moving expenses, utility hook-up fees, property tax adjustments, ongoing maintenance, and utility costs.