|
|
What should first-time buyers know?
What are my closing costs when buying a home?
What documents or items might I need to buy a home?
What are my mortgage options?
What are the rules for a 5% down payment?
What can we do to ensure we get Top Dollar when selling our Home?
Q: What are my closing costs when buying a home?
 |
A: SURVEY: If required, the approximate cost of a typical survey on a standard residential property will be from about $700 to $800 plus GST.
LEGAL FEES AND DISBURSEMENTS: Legal fees range from about $400 to $600 plus disbursements. Disbursements will be the following approximate costs: i Municipal Property Tax Certificate $25. ii Municipal Zoning and Work Order Report $70. iii Sheriff's Certificate $100. iv Title Search $100. v Sub-search $10. vi Union Gas Report $25. vii Hydro Report $15. viii Register Deed $50. ix Register Mortgage $50. x Survey $800. xi Transaction Levy Surcharge $50. xii Land Transfer Tax. 5% of first $55,000. 1% of the next $55,001 to $250,000. 1½% of balance $250,001 and up. xiii Miscellaneous costs such as photocopies, postage, fax, etc. $50.
MORTGAGE FEES: Most mortgage companies charge an administrative fee to register a mortgage document. This can vary from $50 to $150 depending on the mortgage company. More details on mortgage costs will be provided in the mortgage option section below.
HOME INSPECTION: Home inspections are becoming increasingly popular and provide good protection and information for Buyers and Sellers. Typically this fee varies from $200 to $300. |
Q: What documents or items might I need to buy a home?
|
A: To provide the buyer with accurate information, your CENTURY 21 Sales Professional will require several documents.
SURVEY: (Freehold only)
A new survey of your property, or a copy of an existing survey, will show the legal dimensions of the property, any easements or restrictions, and fences and buildings on the property. If you cannot find a copy, consult the vendor's lawyer who handled the purchase of the property, the lender who provided the mortgage, or possibly a neighbour. A copy may be available through those sources.
TAX BILL:
A recent tax bill will provide the Buyer with the assessment value and property taxes including any temporary local improvement charges such as recently installed sidewalks, water and sewer lines, etc.
UTILITY SUMMARY: (Not applicable to condo's)
Buyers often want to know how much it costs to run the home. This can vary from family to family. However the previous owner's costs are useful as a general guide. Obtain the cost of heat, electricity, water and cable for the previous year to estimate the costs.
KEYS TO THE PROPERTY:
Once your lawyer has attended at the Registry Office and completed necessary paperwork and transferred the funds, then and only then will the lawyer receive the keys to your new home. When you go to the lawyer's office before the closing to sign the closing documents, arrange for a time and place to pick up the keys from the lawyer.
CONDOMINIUM: (If applicable)
For condominium buyers you should obtain the telephone number of the applicable Condominium Corporation so that you may request the most recent financial statements and budget information. Make sure the balance in the reserve fund is included in the report. To make sure you have access to these reports you could make your offer conditional on the inclusion of these reports and subject to your approval within a specified time period.
INCOME PROPERTIES:
The buyer will require a list of your tenants, a copy of their leases, tenant telephone numbers, monthly income and expenses for the building, and mortgage details if the mortgage is to be assumed.
For quick action and satisfaction with your real estate transaction, contact a CENTURY 21 Results ASAP Realty Ltd. Sales and Marketing Professional today. |
Q: What are my mortgage options?
|
A: PORTABLE: In some cases, your lender will allow you to arrange a mortgage for your new home that can be taken from one property to another should the need arise.
You may take advantage of this option to:
1) Avoid a mortgage discharge penalty
2) Keep an existing mortgage rate that is beneficial to you.
BLENDED: When you take an existing mortgage rate and average it with a current, usually higher rate.
CONVENTIONAL: When the loan to value ratio of your mortgage is 75% or less of the value of the property that you are purchasing.
HIGH RATIO: When you borrow more than 75% of the value of the property it must be insured by the borrower, through Canada Mortgage and Housing (CMHC) or GE Captial. The insurance fee (paid by the borrower) is from 2.5% to 3.75% of the value of the mortgage paid to the lender to guarantee their loan. This fee is added to the principal balance of the mortgage and does not form part of your closing costs. However, GST must be paid on the insurance fee which will be part of your total closing costs. |
Q: What are the rules for 5% down payments?
|
A: Home buyers using the Federal Government's (CMHC) five percent down payment program will have to qualify for a mortgage at the 5 year rate instead of the 3 year rate. Further, buyers will have to select a mortgage term of at least 3 years. Ask us how you can buy a home with 2% or LESS down payment!
Additional rules are...
1) A buyer's total debt service ratio (TDS) cannot exceed 40%
Your total monthly expenses cannot consume more than 40% of your income.
2) A buyer's gross debt service ratio (GDS) cannot exceed 32%
Your total home costs including principal, interest, taxes and heating cannot consume more than 32% of your monthly income.
3) Financial gifts should be in the buyer's bank account prior to making the application to Canada Mortgage and Housing Corporation or GE Capital.
4) The maximum amortization period is 25 years.
5) At the time of a mortgage application the buyer must demonstrate their ability to cover closing costs equal to at least 1.5% of the purchase price. This is in addition to the 5% down payment.
6) Mortgages have portability subject to CMHC and GE Capital rules.
7) The maximum house price to qualify for this program is $175,000 in the Sarnia/Lambton area.
8) CMHC FEES
75.0% TO 80% = 1.25%
80.1% TO 85% = 2.00%
85.1% TO 90% = 2.50%
90.1% TO 95% = 3.75%
Our "in house" Mortgage Broker will guide you through this process. For the lowest rates and best terms possible, contact Mike Goss of The Mortgage Alliance Company of Canada through Century 21 Results ASAP Realty Ltd. We will save you time and money. |
|
|
|