TYPICAL EXPENSES

Additional costs related to buying a home may include mortgage insurance, property tax adjustments, appraisal and survey fees, house insurance, inspection reports, legal fees and GST.

Mortgage default insurance and application fee
If you get a high-ratio mortgage you will have to buy mortgage default insurance from CMHC, Genworth, AIG or a private company. If you qualify for a 5% down payment, CMHC will charge an insurance fee equal to 2.9% of the mortgage. If you put 10% or 15% down, your insurance fees will decrease to 2.5% and 2% respectively. This insurance premium is usually added to your mortgage.

GST
When purchasing a newly constructed home, you must pay 5% GST. However, if your house is less than $450,000 you are eligible for a rebate. There is no GST on resale housing unless there have been substantial renovations to the property. GST will apply to services provided by a consultant such as a REALTOR, lawyer or home inspector.

Prepaid property taxes, utility bills, etc.
You will have to reimburse the sellers for any prepaid property taxes, utilities, security services, etc.

Appraisal fee
Before your lender approves your mortgage, you may be required to have an appraisal done. Your lender may cover this cost; otherwise, it is your responsibility. The appraisal is usually required by the lender to verify that the property—not you, the borrower—qualifies for the requested mortgage amount; also, to validate that there is an existing property.

Survey fee
Your lender may require an up-to-date survey of the property. If the seller did not provide one, you will have to pay to have it done. Your Purchase Contract will determine who is responsible for the fee (buyer or seller).

Home Inspection fee
Most REALTORS recommend that you get a home inspection by a professional home inspector. Costs may vary according to the size or age of the house.

Professional Condo Document Review
This fantastic service will provide you with an in depth look at your condo complex, board and unit. Having this unbiased third party takes the pressure off you and allows a neutral professional to review all the details providing you with a detailed report.

Legal fees
Lawyers' fees for closing the sale vary according to the complexity of the deal. They will arrange payment of Disbursements to the Land Titles Office on your behalf.