If you’ve decided to buy a home, it’s important you understand all the costs involved in addition to the price you're paying for the property.

Lenders may charge a mortgage application fee, which will vary depending on the lending institution.

The federal government requires high-ratio mortgages with less than 20% down payment to be insured against default. The cost ranges between 0.60 to 4.50 per cent of the mortgage amount which is added to the mortgage principal.

The federal government requires a 10 per cent down payment on homes valued at $500,000 - $1 million that need mortgage insurance. Homes valued at $1 million+ require a minimum down payment of 20 per cent. Mortgage insurance is not available for homes in this price range. 

Before your lender approves your mortgage, you may be required to have the property appraised. Sometimes your lender will cover this cost. If not, you're responsible. The fee ranges from $300 to $450 plus GST.

Lenders may require a survey of the property. The fee ranges and is typically $500 plus GST.

A home inspection is a report on the condition of the home and includes structural and moisture problems, as well as electrical, plumbing, roofing and insulation. The fees range and is typically $500-$900 depending on the size of the home and the complexity of the inspection. Some inspectors also charge an additional fee for an older home or a home with a secondary suite, a crawlspace, or a laneway home.

The GST on a new home is 5% of the price. A GST rebate equivalent to 36% of the GST paid is available for new homes priced up to $350,000 and a partial rebate on new homes priced up to $450,000.

Buyers also pay the GST on fees for services from appraisers, home inspectors, lawyers, Notary Publics and REALTORS®.

The PST is generally not payable on services except for legal and notary fees.  Both the GST and PST are paid on legal and notary fees.

 

 

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