CLOSING COSTS FOR HOME BUYING

CLOSING COSTS_BUYING

2008-03-03T06:20:00.000-08:00

CLOSING COSTS( Cash Needed):During Transaction by Lawyer
Roughly 1.5 % TO 2% of Purchase Price of house.
PLUS NEED MIN OF 5% DOWNPAYMENT
1.Land Transfer Tax (http://www.titleplus.ca/RSREG/landtransfertax.asp)
2.Legal plus disbursements $850+taxes+May be LTT decumentation charge $75-$150
3.PST on High Ratio CMHC Insurance
4.Adjustments-
* Water,Gas & Electricity meter(Utilities)
* Property Tax if seller paid in advance for full year
5. Tax hold backs for High Ratio Mortgages(4 months tax appox.) and tax must be paid with mortgage.This depends on bank.
6.Wire and Banking charges(transfer funds)=appox$40
7. Registration of Charge(Mortgage)=$141
8. Title Insurance=$351
9. Interst adjustment

FOLLOWING CHARGES ARE PART OF MORTGAGE AMOUNT and borrowed from bank.
* CMHC Insurance Premium(Diff %age rate for different downpayments)

FOLLOWING SERVICES ARRANGED BY buyer
1.Fire Insurance
2.Life Insurance or Mortgage Insurance MPP-optional
3.Utility deposit some cases if you do not have credit history
4. Moving Costs
5. Phone/Cable/internet Hook up charges
6. Mail Reversal charges
7. Carpet cleaning/duct cleaning/painting/fencing/roof repair/land scaping/cracks repair in basement(may be needed)
8. Change of Address on all ID(usaully no cost)
COSTS BEFORE closing of BUYING a home
1. Home inspector fee $275-$420
2.Appraisal fee $200-$300(may be)

SUKHPAL SINGH, Sales Rep
HomeLife Superstars Real Estate Ltd,Brokerage
Diriect:416-878-3212
Office: 905-792-7800
www.SUKHPAL.ca

HOW MUCH CMHC PREMIUM COSTS?

2008-03-03T06:18:00.000-08:00

How Much Does CMHC Mortgage default Insurance Cost?
To obtain CMHC Mortgage default Insurance, lenders pay an insurance premium. Typically, your lender will pass these costs on to you. Your lender will give you the exact price when you apply for a mortgage and its one time charge.This is mostly included to your borrowing amount.You can pay it infront in your closing costs.

The CMHC Mortgage premium is calculated as a percentage of the loan and is based on the size of your down payment. The higher the percentage of the total house price/value that you borrow, the higher percentage you will pay in insurance premiums.

Remember: without mortgage insurance you may avoid the insurance premium but you’ll typically pay much higher interest rates and additional administrative fees. At the end of the day, for the vast majority of borrowers, the cost of CMHC Mortgage Loan Insurance is more than fully offset by the savings achieved.

Table of CMHC Mortgage Loan Insurance Premiums
Loan Size(% of Lending Value) Single Advance Premium
(% of Loan)
Up to and including 65%(mortgage amount)
= 0.50% x purchase price
Up to and including 75%
=0.65% of pp
Up to and including 80%
=1.00% of pp
Up to and including 85%
= 1.75% of pp
Up to and including 90%
=2.00% of pp
Up to and including 95%
Traditional Down=2.75% of pp
Payment Flex Down= 2.90% of pp

Note: See your lender for premium surcharges and other terms and conditions that
apply.

SUKHPAL SINGH, Sales Rep
HomeLife Superstars Real Estate Ltd,Brokerage
Diriect:416-878-3212
Office: 905-792-7800
www.SUKHPAL.ca

CMHC FEE?

2008-03-03T06:15:00.000-08:00

IT IS DEFAULT INSURANCE WHICH PROTECTS LENDERS IN CASE OF MORTGAGE DEFAULT OR BANKRUPTCY.

Mortgage Default insurance is typically required by lenders when homebuyers make a downpayment of less than 20% of the purchase price. Mortgage Default insurance helps protects lenders against mortgage default, and enables consumers to purchase homes with little or no downpayment — with interest rates comparable to those with a 20% downpayment.

As with any insurance, there are insurance premiums to be paid. The amount of the premium varies and can range between 0.65% and 2.9% depending upon how much of the purchase price/home value is financed with a mortgage loan.

Mortgage loan insurance is not to be confused with mortgage life insurance which guarantees that your remaining mortgage at the time of your death will not be a burden to your estate.

For more Info Contact-
SUKHPAL SINGH, Sales Rep
HomeLife Superstars Real Estate Ltd,Brokerage
Diriect:416-878-3212
Office: 905-792-7800
www.SUKHPAL.ca