If you, as a home buyer, are having concerns about all the fees and taxes involved in your new property acquisition, please check out the completion cost guide below, and feel free to contact me if you have any questions!
GST – If you buy a newly constructed home, you must pay the GST . However, if your house is less than $475,000 you may be eligible for a rebate. There is NO GST on resale housing unless there have been substantial renovations to the property.
Property Transfer Tax – When a residence is purchased a Property Transfer Tax (PTT) is applied. PPT is calculated as 1% of the first $100,000 and then 2% of the remaining balance of the purchase price of your new home. For more information please click here.
Prepaid property taxes or utility bills – You will have to reimburse the sellers for any prepaid property taxes or utilities.
Mortgage loan insurance and application fee – If you get a high-ratio mortgage (a mortgage where you pay less than a 20% down payment) you will have to buy mortgage loan insurance from CMHC or a private company. If you qualify for a 5% down payment, CMHC charges an insurance fee that equals 3.25% of the mortgage. If you put 10% or 15% down, your insurance fees will decrease to 2% and 1.75% respectively. The insurance premium usually gets added to your mortgage. Please, contact me for current CMHC regulations.
You will also have to pay an application fee. CMHC’s standard fee is $235. CMHC also offers a basic service for a $75 fee but it must be accompanied by an appraisal.
Appraisal – Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers this cost otherwise you are responsible for covering this cost. The fee ranges from $150 to $350.
Survey fee – Your lender may require an up-to-date survey of the property. If the seller did not provide you with one, you will have to pay to have one done. The fee ranges from $150 to $350.
Home Inspection fee – Most Realtors recommend that you get a home inspection by a certified home inspector. It will cost you from $150 to $350 for a smaller house. Large houses may cost more.
Legal fees – Lawyers/Notaries fees for closing the sale range according to the complexity of the deal but they will probably be at least $400 when you sell your property, and $800 to $1000 for the purchase of a new property. Get in touch today for Special Legal Package Pricing.
Disbursements to Land Titles Office – These fees are approximately $300. Your lawyer/notary will arrange this payment.
I hope this list helped to clarify some of your doubts. Now let’s start looking for your dream home, take a look at the Fleetwood listings!