First Steps

Mortgages

Expenses

Stress

Expenses

There are nine items to consider for your "up-front" expenses.

1. When you apply for your mortgage funds, the bank will charge you an application fee of approximately $175.00.

2. In addition there is a fee of $235.00 to accompany your application to C.M.H.C. (if you need C.M.H.C. approval)

3. Most financial institutions these days require a survey before they will advance mortgage funds. If one is needed and the vendor does not have one in his possession, either you or the vendor would cover the cost of the survey. Surveys can cost anywhere from about $700 to $1,000 plus GST.

4. If you have made your offer conditional upon a building inspection, the cost of the inspection, complete with written report is usually about $250 - $275. Ask your realtor for a list of 3 or 4 companies you can call.

5. On day of closing, you will need to have your new property insured. Once your deal is done, contact your insurance agent and give him or her the information they require. They will provide you with premium details and costs.

6. As stated earlier, you will need the services of a lawyer. Fees will vary a little between $400 and $600 currently, plus disbursements (the other associated costs borne by the lawyers on your behalf). Plus there may be adjustments needed to prepaid taxes or utilities which will be added to the total cost. (A reminder: GST is added to the services provided by your lawyer)

7. Land Transfer Tax is paid on all property changing hands in the Province of Ontario. The Purchaser pays a stated amount based on the purchase price of the property she or he is buying. For example, a property of $50,000 value would pay Land Transfer Tax of $250.00, a property of value $150,000 would pay $1,225.00.

8. Appliances can sometimes be negotiated into the sale. If this is not the case, budget for the purchase of major applicances. The same applies to draperies and other types of window coverings.

9. Associated moving costs will be the rental of a truck or the hiring of a company to move, depending on your situation. Costs such as these vary greatly from very little to several thousands of dollars.