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Guarantee | Start-up Costs | Listings | New Home Construction
ESTIMATING START-UP COSTS
Before you start shopping for a home there are a number of costs you should be aware of and budget for.
Your combined closing costs typically represent between 2% & 4% of the purchase price. These costs will vary depending on several factors, including the purchase price of the home, the expenses for utilities and taxes that the owner has prepaid and the type of mortgage (high ratio vs. conventional) that you obtain.
Here are some explanations of the closing costs. If you wish closing cost information on a specific home please contact me at any time.
Start-up Costs
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Land Transfer tax
- The rate of tax is calculated as follows:
.5%
amounts up to and including $55,000
1.0%
amounts exceeding $55,000 to and including $250,000
1.5%
amounts exceeding $250,000 to and including $400,000
2.0%
all amounts exceeding $400,000
Example
Purchase price $175,000: 275+1200=$1475
- The rate of tax is calculated as follows:
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Lawyer’s Fees
- Varies.
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Disbursements
- Registration of deed and mortgage
- Certificates for tax, water, hydro, gas, etc…
- Compliance Reports
- Title search
- Miscellaneous (copies, faxes etc…)
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Law Society Transaction Levy
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Adjustments
- This is the reconciliation of accounts where the Seller has prepaid accounts, which the Purchaser will benefit from
- It is calculated on a per diem basis for the year of purchase
- They may include taxes, oil, interest, etc.
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Title Insurance or Survey
- You need one of these to obtain a mortgage. Some properties have a survey that is acceptable to the bank or financial institution.
- for further information click here.
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Mortgage Processing Fee
- This includes appraisal fee. For further information on mortgages click here.
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GST on Mortgage Insurance Premium
- Only if you have a high ratio mortgage or the risk is to the lender is higher than normal.
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Inspection
- Optional, however highly recommended.
Additional Expenses For New Construction Only
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GST
- Often built in to the advertised price of the home
- Previously owned homes are exempt
- New Housing: Effective rate 4.5% for homes up to $350,000 for homes $450,000 and over full 7%
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New Home Warranty Application Fee
- For further information click here.
Ongoing Expenses
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Mortgage payments
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Mortgage Insurance Premium
- Only if you have a high ratio mortgage or the risk to the lender is higher than normal.
- Calculated based on funds advanced and blended with mortgage payments.
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Property Taxes
- Based on the assessed value of your home.
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Household Insurance
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Utilities
- Such as heating fuel, hydro, water etc.
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Maintenance
