Costs to Consider
I can assist YOU:
- In assessing your housing needs through the various tools available.
- In understanding the housing market as I know the market well.
- In determining how much you can afford including all hidden closing costs.
- With building your home buying team i.e. lawyer, lender and home inspector.
- By pointing you in the right direction for arranging your mortgage.
- By showing you the homes that match your needs since I have access to ALL currently listed properties and new homes in the Ottawa area.
- By preparing a market analysis of the neighbourhood (of the selected home of your choice) so you get a complete picture of the actual value of the property which will assist you in determining your offer price.
- By providing step by step guidance in the offer process.
First Home Loan Insurance (also referred to as 5% Down) - This is a CMHC product of particular interest to people looking for their first home. It allows qualified first-time buyers to purchase a home with as little as 5% down. In these cases, CMHC and other insurers will insure mortgages of up to 95% of the home's purchase price or the market value of the property, whichever is less. (Restrictions may apply. Contact your local lender.)
I am available to walk you through the mortgage calculator at your convenience. There are certain guidelines that must be followed in order to be approved by any lending institution i.e. no more than 38% of gross income can be used to service loans/mortgages.
Costs to Consider
Once you have figured out the home price range you can afford and the type of mortgage you qualify for, you will need to calculate all of the associated costs of the transaction to make sure you are financially ready.
You will need to plan ahead to cover the many up-front costs of buying a home. Timing is important to help make sure things go smoothly.
- Mortgage Loan Insurance Premium. If yours is a high-ratio mortgage (less than 20% down payment), your lender may need mortgage loan insurance. Your lender may add the mortgage insurance premium to your mortgage or ask you to pay it in full upon closing.
- Appraisal Fee. Your mortgage lender may require that the property be appraised at your expense. An appraisal is an estimate of the value of the home. The cost is usually between $350 and $400 and must be paid when you contract for those services.
- Deposit. This is part of your down payment and must be paid when you make an Offer to Purchase. The cost varies depending on the area, but it may be up to 5% of the purchase price. If you wish to make a down payment of 5% and you give a deposit of 5%, then your down payment is considered to be made. (Could be as low as $1,000.)
- Down Payment. With mortgage loan insurance from CMHC you can own your home with a minimum down payment of 5%. At least 20% of the purchase price is usually required for a conventional mortgage.
- Status Certificate Fee. This applies if you are buying a condominium unit and could cost up to $100 and taxes.
- Home Inspection Fee. I recommend that you make a home inspection a condition of your Offer to Purchase. A home inspection is a report on the condition of the home and generally costs around $500, depending on the complexities of the inspection. For example, it may be more costly to inspect a large home or one where issues such as moisture problems, pyrite, radon gas or urea-formaldehyde are suspected.
- Land Registration Fees (sometimes called a Land Transfer Tax, Deed Registration Fee, Tariff or Property Purchases Tax). You will have to pay this provincial charge upon closing. The cost is a percentage of the property’s purchase price and may vary. Check with your lawyer/notary to see what the current rates are.
- Prepaid Property Taxes and/or Utility Bills. To reimburse the vendor for prepaid costs such as property taxes, filling the oil tank and so on.
- Property Insurance. The mortgage lender requires this because the home is security for the mortgage. This insurance covers the cost of replacing your home and its contents. Property insurance must be in place on closing day.
- Survey or Certificate of Location Cost. The mortgage lender may ask for an up-to-date survey or certificate of location prior to finalizing the mortgage loan. If the seller does not have one or does not agree to get one, you will have to pay for it yourself. It can cost in the $1,000 to $2,000 range. (Not absolutely required.)
- Water Tests. If the home has a well, you will want to have the quality of the water tested to ensure that the water supply is adequate and the water is potable.
- Septic tank. If the house has a septic tank, it should be checked to make sure it is in good working order.
- Legal Fees and Disbursements. Must be paid upon closing and cost a minimum of $500 (plus GST/HST). Your lawyer/notary will also bill you direct costs to check on the legal status of your property.
- Title Insurance. Your lender or lawyer/notary may suggest title insurance to cover loss caused by defects of title to the property.
If you feel you cannot cover all of the up-front costs, you can ask your lender for a loan. Remember that payment for this loan amount, based on a 12-month repayment period.
Relocating to Ottawa?
Request Your Free Relocation Package
If you see a move to the Nation's Capital in your future, contact Yves Desjardins to help you find the perfect home. I have a great deal of experience, with thousands of homes sold in all areas of the city, and I have extensive knowledge of the Ottawa area.
I will take the time to make sure all your questions are answered and all of your concerns are addressed to make your home-buying experience an enjoyable one.
Ottawa Relocation Package
I am pleased to be able to provide you with my Relocation Package. The package includes:
- map of the City of Ottawa;
- valuable coupons for you to use in your move;
- steps to finding a home;
- Ottawa magazine;
- comprehensive information about my real estate services; and
- my latest information product, the "Ottawa Relocation Guide". It is your complete guide to a successful relocation to the Nation's Capital. This comprehensive guide offers not only detailed information about the City of Ottawa, but also everything you need to know about schools, arts, sports, activities that you may be interested in. Inside, you will also find valuable information regarding the home buying process.
If you would like me to mail you the Relocation Package, simply fill out the form in the Contact Section.