If you are a first time home buyer, renewing or refinancing your mortgage, it makes sense to start budgeting and find out approximately how much you will be paying upfront and per mortgage payment.
Mortgage Rates and Terms
After you have determined if you can afford a mortgage (Mortgage Affordability Calculator), you can then determine approximately how much you will pay per mortgage payment with various terms, best mortgage rates, amortization period and downpayment (Mortgage Payment Calculator) using various scenarios.
Here is an approximation of potential closing costs to include in your budget outside of the mortgage cost and the best mortgage rates.
- Property valuation fee ($150 – $200) – Property lending value
- Home inspection fees ($500)
- Property survey ($750 – $1,000)
- Land transfer tax (Use our Land Transfer Tax Calculator)
- Legal fees and related expenses ($1,300 – $2,500)
- GST/HST (HST applies to newly constructed homes or substantially renovated homes, but does not apply to resale homes and you could be eligible for GST/HST New Housing Rebate
- Title insurance ($250) Ensure the closing is not delayed due to defects in title and other risks.
- Mortgage Insurance (Use our CMHC Calculator)
- Home insurance ($450/year)
- Property/Fire Insurance – Proof of insurance due on closing date and to cover replacement value of home and contents.
- Interest adjustments ($100 – $1,000) Interest accrued between your closing date and your first scheduled mortgage payment and to be paid on the Interest Adjustment Date
- Prepaid property tax and utility adjustments ($400 – $500) Condo maintenance fees, if applicable, Municipal property tax, Utilities (such as heating, hydro and water)
Other Costs That May be Applicable
Septic Tank – Testing fees to ensure in proper working order.
Estoppel Certificate Fee (not applicable to Quebec and sometimes referred to as status statements or acknowledgments). Required only if you are purchasing a condo, strata unit or commercial unit. The Estoppel Certificate outlines a condominium corporation’s financial and legal state of affairs.
Note: Not applicable to all Purchasers
Ensure you consider minor or major renovation costs. This is important to factor in if you are trying to determine whether to purchase a fixer upper or a totally renovated home. Even if you purchase a home that is renovated, you may want to add your personal style with touch ups, so give this a budget too.
You will want to factor in moving expenses, but also be aware your moving expenses could be tax deductible if you move and establish a new home to be employed or carry on a business, you can deduct eligible moving expenses from employment or self-employment income that you earn at the new location. Find out more.
Costs in this blog are approximate and some may not be applicable. The best mortgage brokers at Oakville Mortgage Team will be able to provide answers to what costs are involved in making a home purchase, what is the best mortgage rate for you and best mortgage product. To ensure you make a sound financial decision, find out just how much purchasing a home will cost.