A home inspection will determine the structural, electrical and mechanical soundness of your home.
Your home inspector will identify existing and potential problem areas, suggest practical low-cost solutions, and provide estimates regarding costs for any work required.
Shortly after the inspection has taken place, a report summarizing the findings is generally provided to the potential purchaser.
Home inspection costs often range according to size, age, and location of the home. Most home inspections cost between $300-$450. Baya will recommend a list of reputable home inspection services.
Land Transfer Tax and Typical Closing Expenses
LAND TRANSFER TAX - ONTARIO
Up to $55,000 X .5 % of total property value
From $55,000 to $250,000 X 1 % of total property value
From $250,000 to $400,000 X 1.5 % of total property value
From $400,000 up X 2 % of total property value
CLOSING EXPENSES*
Mortgage Application and Appraisal Fee ... $200-$250
Property Inspection (optional) ... $275-$375
Legal Fees ... $600-$1000
Legal Disbursements ... varies
Deed and/or mortgage registration ... $100
Title Insurance (consult your lawyer) ... $150-$250
* Note - There figures are to be used as a guide only and must be verified by appropriate professional
Bi-weekly and weekly payments
Most mortgages have the option to allow payments to be made on a weekly or bi-weekly basis. This option may be desirable for two reasons. The first is it can save you money as you can expect to pay off your mortgage about 4 years sooner. This can save you dramatically over the life of your mortgage. The other reason why these options are so popular is that if your employer pays you on a weekly or bi-weekly basis, you can simplify your budgeting by making the payment line up with the way you paid.
Reducing the CMHC fees on your purchase
NOTE : THERE ARE ALTERNATIVE TO CMHC FEES - ASK BAYA
When you require a mortgage for more than 75% of the purchase price of a property, that mortgage must be insured by Canada Mortgage and Housing (CMHC) or GE Mortgage insurance. The premium charged by these company`s decreases as the down payment increases. When you finance your property at 95%, a premium of 3.75% is added to the mortgage. By increasing the down payment to 10% of the purchase price the premium can be reduced to 2.5%. If you can put down 25%, you can avoid any additional insurance fee. Depending on your situation there are ways that you can structure this financing to avoid the CMHC or GE insurance premium.
