|
Term |
APR |
| 5 yr variable |
4.65 |
| 1 yr fixed |
5.50 |
| 3 yr fixed |
5.50 |
| 5 yr fixed |
5.79 |
| 10 yr fixed |
6.25 |
|
|
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Buying a home can be exciting and rewarding. It has costs that you should be aware of.
Don't worry about the length of the list. We have tried to be comprehensive and
realistic.
In general, the renting vs mortgage payment argument is persuasive on its own merits.
If you add in possible tax free capital appreciation and pride of ownership, it is powerful.
Be sure to set aside funds to cover expenses.
Allow for monthly:
- mortgage payment
- fire insurance
- property tax
- condo fees
- heating expenses
One Time Costs:
- legal fees (usually allow 1.5% to 2.0% of purchase price to include lawyer and land
transfer. Note, certain circumstances require more. This is a good guideline).
- possible adjustments i.e. taxes, utilities and condo fees.
- deposit with offer
- appraisal cost (many lenders absorb this, some don't depending on the situation)
- home inspection
- interest adjustment depending on the timing of closing
- title insurance
- PST on CMHC fee for high ratio mortgages
- CMHC application fee (may or may not be waived depending on lender)
- estoppel certificate (if condo)
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