Appraisal:
Prepared by an independent appraiser chosen by the lender, or by CHMC if the mortgage is CHMC insured. Approximate costs are $250.00 and are paid directly.
CHMC and PST:
If your mortgage is insured by CHMC, the insurance premium will usually be added to the mortgage so it is not a cash requirement on closing. However, the premium is subject to 8% PST and the tax must be paid upon closing.
The Deposit:
Part of your down payment, the deposit is due upon acceptance of you offer. The deposit amount is usually 5-6% of the purchase price of the home.
Home Inspection:
Prepared by a qualified home inspector to assess the property for major problems prior to the purchaser being committed to the purchase. Costs are $350.00 on average.
Legal Fees/Disbursements:
A lawyer will quote their fee for closing the purchase and handling the mortgage(s) plus an estimate for the disbursements which include search fees, registration fees, courier costs, photocopying and so on. Approximately $900.00 and up.
Land Transfer Tax:
The land transfer tax formula is as follows:
On the purchase up to $55,000 the rate is .05%
On the portion of purchase $55,001 to $250,00 the rate is 1.0%
On the portion of purchase $250,001 to $400,00 the rate is 1.5%
On the portion of purchase over $400,00 the rate is 2.0%
A Simple Calculation is as Follows:
| Purchase Price Calculation of Land Transfer Tax |
| 0 - 55,000 |
$5.00 per thousand |
| 55,001 - 250,000 |
$10.00 per thousand minus $275.00 |
| 250,001 - 400,000 |
$15.00 per thousand minus $1525.00 |
| 400,001 and up |
$20.00 per thousand minus $3525.00 |
Example:
On a $300,000 home, the calculation is:
300 x 15.00 = 5250.00 - 1525.00 = $3725.00
This is payable on closing and is usually paid through your lawyer.
Interest Adjustments:
Monthly mortgage payments are due on the first of the month. Unless the closing date is the first of the month, you must prepay the amount of the interest accruing up to the first day of the following month, which is the Interest Adjustment Date.
Moving Costs:
This varies greatly depending on the amount of time it will take to pack, load, un-load and the distance you are moving. Reduce costs by moving at off peak times. Get estimates from a reliable mover with good references. We can be of service to you finding a reputable moving company.
Please 'contact Kevin'.
Prepaid Expenses:
If the vendor has prepaid any other expenses such as utilities, water and sewage, taxes or heating costs, then the vendor must be paid back. This will be reflected in the Statement of Adjustments.
Property Tax Hold-Back:
If the lender is collecting and paying property taxes within the mortgage, you may be required to pay the lender and amount to ensure sufficient funds are available to pay the next instalment of property taxes when due.
Survey:
If the vendor does not provide you with an up to date survey in the Adjustment of Purchase and Sale, it will be necessary to have one prepared, as mortgagees require it. Cost is approximately $750.00 and up for a new survey. |
