Getting Ready To Buy?

Whether you are tired of renting, looking to buy something bigger or looking for a second home, saving money for a down payment and closing costs can potentially be a major challenge or obstacle. Your dream of home ownership can be realized with the right timing and strong financial planning.
Let us to show you how.
Below is a list of key items to consider when applying for a mortgage:
Mortgage Loan Insurance Premium
If your mortgage is a high-ratio mortgage (less than 20% down payment), your lender will require mortgage loan insurance. This premium is typically added to your mortgage.
Appraisal Fee
Your mortgage lender may require that the property be appraised at your expense. An appraisal is an estimate of the value of the home. The cost ranges between $300 and $450 and must be paid when you contract for those services.
A deposit will be included as part of your down payment and must be paid when you present an Offer to Purchase. The deposit amount required will vary depending on the market area and the home value, but it may be as much as 5% of the purchase price.
Down Payment

With as little as 5% down payment, you can realize your dream of home ownership. 20% of the purchase price is usually required for a conventional mortgage to avoid mortgage insurance premiums. Your down payment can be derived from one or more of the following sources:

    If held in your bank account, 3 months history of your bank account to verify down payment funds are available. If using RRSPs, a 3 month history will also be required.
    You will need to provide a Sale agreement. You may also be asked to provide a recent mortgage statement to confirm the equity in the home.
    A recent account statement showing available funds and payment information.
    You will need to provide a signed gift letter from an immediate family member and may be asked to provide proof of deposit of gifted funds into your bank account.
Estoppel Certificate Fee (not applicable in Quebec)
This applies if you are buying a condominium or strata unit and could cost up to $100.
Home Inspection Fee
A home inspection may be a condition of your Offer to Purchase or serve as a peace of mind for you and your family. A home inspection is a report on the condition of the home and generally ranges around $500, depending on the complexities of the inspection. For example, it may be more costly to inspect a home that has large square footage, one that is expensive, or one where contaminants such as pyrite, radon gas or urea formaldehyde are suspected.
Prepaid Property Taxes and/or Utility Bills
To reimburse the vendor for pre-paid costs such as property taxes, filling the oil tank, etc.
Property Insurance
The mortgage lender requires property insurance because the home is essentially the lenders security for the mortgage. This insurance covers the cost of replacing the structure of your home and its contents. Property insurance must be in place on closing day.
Survey or Certificate of Location Cost
The mortgage lender may ask for an up-to-date survey or certificate of location prior to finalizing the mortgage loan. If the seller does not have one or does not agree to provide one, you may have to incur this cost. The cost can range between $1,000 to $2,000. In some cases, title insurance is acceptable in lieu of the Survey, also known as a real property report.
Water Quality Inspection
If the home has a well, you will want to have the quality of the water tested to ensure that the water supply is adequate and the water is potable. You can negotiate these costs with the vendor and list them in your Offer to Purchase.
Legal Fees and Disbursements
Must be paid upon closing and cost a minimum of $500 (plus GST/HST) and is typically part of the closing process handled by your lawyer.
Title Insurance
Your lender or lawyer/notary may suggest title insurance to cover loss caused by defects of title to the property. Title insurance is sometimes acceptable in lieu of a survey/real property report.
Alternative and private lenders typically charge a fee. Sometimes these fees are added to your mortgage amount, other times the lender may request that these fees are paid up-front. For the most part, our services are free. However, a fee may be incurred to place your mortgage with a private or alternative lender. Under normal circumstances, our mortgage agents and mortgage brokers are paid a commission directly from the lender at no extra cost to you, the client.