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The-Mortgage-Gal

Mortgage costs

 
I always like to spend time with my clients going through the costs associated with the purchasing or a property in addition to the downpayment.
 
For this example I am going to use a purchase price of $400,000 with the minimum downpayment:

 
Downpayment:                              minimum 5%           $ 20,000
Balance of the purchase price:     maximum 95%        $380,000
Legal Fees and disbursements:                                   $1,200-$1,500
Title Insurance:                                                             $   249
 
Adjustments for property tax, fuel etc:                          $TBA
  • If the purchase is made before July 2 this will be a credit for the vendor's portion of the current year taxes which the purchaser will pay.
  • If the purchase is made after July 2 this will be a debit for the taxes paid up to the 31st of December.
Property purchase tax:  1% of the first $200,000 and 2%  ($6000) of the balance.

 
Home Insurance:                   $600-$800 per year
Appraisal Fee:                       $300-$500
Home Inspection Fee:           $450-$650
 
Interest Adjustment               $TBA
 
Depends on when the 1st payment is made, interest from closing date to the nearest interest period before the 1st payment.  (i.e. If payments are to be made on the 1st of the month, it would be the number of days from closing to the nearest 1st of the month and then the first payment would be the following 1st of the month.
 
Mortgage Broker Fee:           $TBA
 
In most cases this is not charged unless the broker is NOT being paid by the lender.
 
These are just estimates to assist the purchaser in calculating how much they require to purchase a home. It is suggested that the purchaser confirm these costs with his/her solicitor.
 
For any further questions please contact us at 250-862-1806 or email [email protected].


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About the Author

Laurie Baird and Tracy Head are mortgage brokers with Verico Complete Mortgage Services. Together they have over 45 years of experience in the mortgage industry.

As mortgage brokers, Laurie and Tracy spend time getting to know the people they work with and help them understand the mortgage process. They support their clients before, during, and after a home purchase.

Laurie and Tracy are able to offer their clients advice and options. With access to over 40 different lenders, Laurie and Tracy are able to match the needs of their clients with the right mortgage package. They work closely with their clients to find the right fit, and are around to provide support for years down the road!

Contact them at 250-862-1806 or visit:
http://www.okanaganmortgages.com

Visit Laurie's blog at: https://www.okanaganmortgages.com/blog



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The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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