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Costs of Buying a Home


 Home Buying Costs

* Actual amounts may vary.

 

Application Fee

($75) It costs lenders money to process your application, and some will pass it on to you. Many lenders will waive this fee.

Appraisal Fee

($160) Someone on the lender's staff or by an outside professional does the appraisal.

Mortgage Broker Fee

(varies, if required) Usually payable at the time of closing, although some brokers require the fee up front.

Real Property Report (Survey) Fee

($400) The Seller is usually responsible for the R.P.R. It confirms the property's boundaries and makes sure there are no problems called "encroachments".

Inspection Fee

($300) A professional inspection of your home is often recommended.

Interest Adjustments

If your mortgage is not funded at the time of month your payments are scheduled for there will be an adjustment. Also if you are assuming a mortgage there will be an adjustment if you are not moving in on the date payments are scheduled. Unlike renting, usually you will get a month grace, that is your payment will not start until you have been in your home for a month. Usually over 95% of a mortgage payment is interest that has built-up over the previous month. Payments are made on accrued interest and therefore not made in advance.

Home Insurance

($300-$500/year) There are several potential types of home insurance depending on your specific requirements. Call your insurance broker for a quote.

Legal Fees

($300 to $1,200) Legal fees vary dependent on the price of your new home & whether you are placing a mortgage or not. Refer to the  "Your Lawyer" section.

Utility Costs

($150-$300/month) Be sure to budget for heating, electricity and water. Deposits may need to be made.

Moving Company

(Varies widely depending on distance and service.)

Canada Mortgage & Housing Corp. (CMHC)

Mortgage insurance for the bank is added to your mortgage balance if you have less than 25% down payment. This can be up to 4.25% of the mortgage amount. Refer to CMHC section below

Property Tax Adjustment Additional Property tax info. is in the Seller's Guide

Calgary property taxes are based on the calendar year from January 1st to December 31st of each year and are due on or before June 30th of that year. The City offers a T.I.P.P. program (tax installment payment plan) so you can make monthly payments directly. If the previous owner was using TIPP you can take the account over. If not you will have to arrange for an account to be setup. Usually you need to call before November to make arrangements for the following year. If TIPP is not an option, taxes will be adjusted on a per-diem basis by your lawyer.

Out of Province Vehicle Inspections

($50) Depending on where you have it done. Any needed repairs would be in addition.

Miscellaneous

Don't forget costs for initial renovations if needed. Monthly maintenance and/or condominium fees etc.

 

Mortgage Insurance Premium

This is an insurance premium on the mortgage for the bank of finance Company's benefit not the Buyer's. Mortgages in Canada with less than a 25% equity position by the Purchaser must be insured. Canada Mortgage & Housing Corp. and GMHC are insurer corporations. CMHC loan insurance is portable (on mortgages placed since April 1997) to all areas of Canada under certain terms and conditions. The following is a table of fees relative to the percentage equity, the greater the down payment the less the fees are. Fees are added to the mortgage amount, they do not increase the down payment.

Estimate of Mortgage Loan Insurance Premiums & Surcharges

Homeowner mortgage loan Insurance premiums vary according to the Loan-to-Value Ratio.

Purchase Premium Loan-to-Value Ratio Premium on Loan Amount
 


Up to and including 65%

Up to and including 75%

Up to and including 80%

Up to and including 85%

Up to and including 90%

Up to and including 95%

Traditional Down Payment

Flex Down

 


0.50%

0.65%

1.00%

1.75%

2.00%

 

2.75%

2.90%

 

 

Note:

Premium - Single Advance: Payable to CMHC at the time the loan is advanced.

Premium - More Than One Advance: Due and payable to CMHC as the mortgage funds are advanced. The mortgage loan insurance premium may be added to the amount of the loan. Where provincial sales tax is payable on the CMHC mortgage loan insurance premium, the amount of the tax is not to be added to the mortgage amount.


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