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Other things to consider when buying your first home:
Mortgage Default Insurance
If your down payment is "high ratio" (Less then 20% of your purchase price), your mortgage must be insured by either the Canadian Mortgage Housing Corporation (CMHC) or Genworth Financial Canada. The premium charged by the insurer will be added to your mortgage balance.
Fire Insurance
Fire insurance in the name of the lender is required on all mortgages.
Property Purchase Tax
In BC, a Provincial tax is charged at a rate of 1% for the first $200,000 of your purchase price and 2% on the remainder. First time home buyers may qualify for an exemption. Your lawyer or notary public can help you determine your eligibility.
Conveyance
A typical conveyance (paperwork for your purchase) will cost between $700-$1,000 and is done by a lawyer or notary public. The cost covers both the legal fees and any and all disbursements, such as property taxes, registration at land titles, title insurance, etc.
Surveys and Title Insurance
Lenders usually require a site survey or title insurance. A site survey verifies the boundries and demensions of both the building and the lot you are purchasing and costs around $300. An alternative to a site survey may be Title Insurance, a cost of which is approximately $200. Consult your lawyer or notary to see which option is best for you.
Appraisals
Lenders may request an appraisal of your property. Formal on-site appraisals are generally not required if your mortgage is high ratio and is insured by the Canadian Mortgage and Housing Corporation (CMHC) or Genworth Financial Canada.
Building Inspection
A building inspection is not required for financing, but is a good investment. For $200-$300, a building inspector will tell you the overall condition of the property, and alert you to any potential problems.
Find a mortgage broker near you or apply online .
If your down payment is "high ratio" (Less then 20% of your purchase price), your mortgage must be insured by either the Canadian Mortgage Housing Corporation (CMHC) or Genworth Financial Canada. The premium charged by the insurer will be added to your mortgage balance.
Fire Insurance
Fire insurance in the name of the lender is required on all mortgages.
Property Purchase Tax
In BC, a Provincial tax is charged at a rate of 1% for the first $200,000 of your purchase price and 2% on the remainder. First time home buyers may qualify for an exemption. Your lawyer or notary public can help you determine your eligibility.
Conveyance
A typical conveyance (paperwork for your purchase) will cost between $700-$1,000 and is done by a lawyer or notary public. The cost covers both the legal fees and any and all disbursements, such as property taxes, registration at land titles, title insurance, etc.
Surveys and Title Insurance
Lenders usually require a site survey or title insurance. A site survey verifies the boundries and demensions of both the building and the lot you are purchasing and costs around $300. An alternative to a site survey may be Title Insurance, a cost of which is approximately $200. Consult your lawyer or notary to see which option is best for you.
Appraisals
Lenders may request an appraisal of your property. Formal on-site appraisals are generally not required if your mortgage is high ratio and is insured by the Canadian Mortgage and Housing Corporation (CMHC) or Genworth Financial Canada.
Building Inspection
A building inspection is not required for financing, but is a good investment. For $200-$300, a building inspector will tell you the overall condition of the property, and alert you to any potential problems.
Find a mortgage broker near you or apply online .
