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BC Mortgage - What other costs should you consider? |
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Deferred Closing Costs Purchasing a home can drain your cash resources. Consider deferring your closing costs for six months, interest-free. Click here to learn more |
It is very important to understand the costs related to a mortgage. Here is a sample calculation for a purchase worth $300,000. Your transaction will, of course, be different. I will be glad to go through with you how much you should budget for when you purchase your first home.
| Name |
John and Jane Smith |
|
| Purchase
Price |
$300,000.00 | |
| Down
Payment |
$50,000.00 |
16.67% |
| Net
First |
$250,000.00 | |
| CMHC
Premium |
$4,375.00 |
1.75% |
| Mortgage Amount | $254,375.00 | |
| R |
5 |
Years |
| Amortization |
25 |
Years |
| Interest
rate |
4.8500% | |
| Payment |
$1,457.81 | |
| BC
Property Purchase Tax |
$4,000.00 |
|
| What
it is |
Why
it is needed |
Standard Est. Cost | How
much you should budget for |
| Mortgage
Application Fee |
application fee paid to CMHC or GE Mortgage | $0 | $0 |
| Appraisal Fee | To
ensure that the value of the home supports the amount
of the mortgage |
$265 | |
| Inspection
Cost |
To
evaluate the structural and mechanical condition of
the property and identify problems before you purchase
the home |
$300-$500 | $400 |
| Property
Survey Cost or Title Insurance |
To verify the property's boundaries, measurements and structures and identify any easements, rights-of-way, or encroachments on your property or adjacent properties. An alternative to consider in lieu of a survey is title insurance | $300-$500 | $150 |
| Home
Ins |
To
insure the home and its contents (get quote from
insurance agent) - can be paid monthly |
$450 | $1,000 |
| BC
Property Purchase Tax |
1%
of the first $200,000 and 2% thereafter. There
may be exemptions for first time buyers
(to
be confirmed by lawyer) |
$4,000 | |
| Interest Adjustment | To
cover any gap between the closing date of the purchase
and the first payment date of the mortgage |
$100-$300 | $100-$300 |
| Pr |
To
reimburse the person selling the home for a |
$1,200 | $1,200 |
| Legal
Fees and Disbursements |
To
cover the lawyer's fees and legal transactions
relating to the purchase and mortgage |
$1,100 | $1,100 |
| Good
and Services and Sales Taxes (if applicable) |
Applicable
to purchase of new homes. Always
ask if sales taxes apply, before you sign an Offer to
Purchase |
---- |
0 |
| Real
Estate Agent Fees |
Generally paid by the seller to the listing agent. |
---- |
0 |
| Moving
Expenses |
To
hire movers or rent a van |
$1,000 | $1,000 |
| Service
Charges |
T |
$50
|
$50
|
| Immediate
Repairs |
These
repairs (and their estimated cost) may have been
identified in the home inspector's report and can be
added to the mortgage amount. |
---- |
|
| Appliances |
In
case they are not included in th |
---- |
|
| Decorat |
For changes you want to make as soon as you move in | $800 | |
| Estimated
Additional Costs |
$9,315 | ||
| Insurance Costs for Low Down Payment Mortgages | To
insure the low down payment mortgage, enabling you to
buy with as little as a 5% down payment. This amount
varies depending on the size of your down payment and
is usually added to the mortgage amount. |
0.50%
- 3.25% of the mortgage amount |
$4,375 |
Note: This does not
constitute a firm quote, it is provided only for
budgeting purposes.
| CMHC/GE Mortgage Premium | Fixed Rate & capped Variable Rate Mortgages |
| up
to 65% |
0.50% |
| 65.01
- 75% |
0.65% |
| 75.01
- 80% |
1.00% |
| 80.01
- 85% |
1.75% |
| 85.01
- 90% |
2.00% |
| 90.01 - 95% | 2.75% |
| 95.01% - 100% | 3.10% |
"My job is done when you know your options"
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