Buying A New Home? Avoid These Surprises!

On tomorrow’s episode of CP24’s ‘Hot Property’, our MonsterMortgage.ca mortgage expert will be covering, among other hot topics, the potential closing costs you might encounter when closing on your home.

Avoid surprises – know your potential costs when closing the deal on your home

Closing your mortgage at the time of purchase typically comes with additional costs. Be sure to ask your mortgage broker and realtor what those costs are so that you are not surprised at closing.

Here is a list of what some of those potential costs might be:

At the offer stage:

• Deposit – makes up your down payment and is due upon acceptance of your offer to purchase your new home
• Home Inspection – cost for assessing your property for defects and poor maintenance
• Appraisal – typically selected by the lender to provide a value to your property

At the time of closing:

• Legal fees and disbursements – ask your lawyer for an estimate, including survey or title insurance
• Property Insurance – required by the lender
• Mortgage Insurance Premiums – paid to CMHC or Genworth
• Land Transfer Taxes (Ontario and Toronto)
• Interest Adjustments for your monthly mortgage payments
• Property Tax Hold-back – this may be required if the lender is collecting the property taxes
• Other fees – depending on your mortgage type there may be additional fees charged by the lender or broker, these MUST be disclosed in advance

These tips are especially useful for first-time home buyers. If you’re a first-time home buyer, or a seasoned home owner, you’ll always find new and useful tips by tuning into CP24’s ‘Hot Property’.