Costs of Buying a Home

 

Costs of Buying a Home

 

Down Payment: 

  • Survey5% or more is required as a down payment. 
  • A 10% down payment may be required depending on the Buyers employment, income & credit history.

Conventional Mortgage:

  • Down Payment of 20% or more. No insurance premium is required.

High Ratio:

  • Down Payment between 5% and 20%.
  • Must have CMHC insurance (or similar product) for the Lender.
  • The premium is added to Mortgage. 
  • 13% HST on the premium to be paid up front. 
  • Insurance premiums vary based on the amount of the down payment.
  • Title InsurancePremiums will vary from the standard rates if the Buyer is self-employed or the down payment is coming from non-traditional sources. 
  • Extended Amortization Surcharges will also be applicable as follows:
  1. Greater than 25 years, up to and including 30 years: 0.20% 
  2. Greater than 30 years, up to and including 35 years: 0.40%

Required Documentation for Mortgages:

  • Accepted Agreement of Purchase & Sale
  • Copy of Listing with Exterior Photo
  • Letter from Employer confirming annual income and length of employment
  • T4 Slips/Income Tax returns
  • Notice of Assessment from previous year
  • Vertification of Down Payment– copy of bonds, investment certificates, bank books.