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Top 10 Closing Costs When Buying a Home – #8

July 30, 2009

Number 8 – Tax on Mortgage Insurance

If you have less than a 20% down payment, your lender will require that you obtain mortgage default insurance. You can roll the cost into your mortgage payments, but the PST is due at closing. For example, if your mortgage insurance is $5,000 and the PST is 8%, you’ll pay $400.