Down Payment:
This is basically the amount of you will be putting towards the purchase of the property.

Deposit:
When you write an offer on a property normally it will include subjects that you wish to satisfy prior to entering into a fully binding contract. Once you remove all of the subjects, you will be required to submit a deposit to your Realtor.

GST:
If you are a brand new home, you will be required to pay the GST on the purchase price. In most cases, when you are constructing a home you will be able to apply for a GST rebate so that you only end up paying part of the GST once your home is constructed. You should speak to an accountant for further advice in this area.

 

High Ratio Premiums:
If you finance more than 80% of the value of your property your mortgage is called a high ratio mortgage. In this case there is greater risk to the bank and they are required to get the mortgage insured against default. In Canada, the main insurers are CMHC, AIG & Genworth. The insurance premium you are charged may be added on to your mortgage. This premium varies depending on how much is financed and the purpose of financing.

Appraisal Fees:
If you are obtaining conventional mortgage financing (financing 80% of the value of the property or less) you will need an appraisal on your property to verify its value. In most cases, an appraisal on a residential will cost you from $200 to $500. The larger the property, the more an appraisal will cost.

 

Home Inspector:
When purchasing a home it is an excellent idea to get an inspection done on the property. The inspection will highlight any major problems with the home before you actually purchase property. The cost of an inspection ranges from $300 to $500 for the standard home.

Legal Fees:
You will need a lawyer or notary to register a mortgage over the property. Generally, on a purchase you will pay $750 to $1000.

Lender:
On most standard financing, you will pay no fees for your mortgage. However, if you obtain financing from a "B" or "Sub-Prime" lender they will generally charge an application fee in the range of 1% - 5%.

Mortgage Broker:
Using my mortgage brokerage services will cost you nothing in most cases.

Property Purchase Tax:
In general, when you buy a property, you will pay a tax for purchasing the property. The tax is 1% on the first $200,000 and 2% on the remainder over that. You may get an exemption on paying this tax if you are a first time home buyer. The exemption usually occurs if your purchase price is less than $425,000 and you purchase a property in the lower mainland. If the purchase price is between $425,000 and $450,000 there is a proportionate exemption and if the price is over $450,000 there is no exemption. Any questions regarding an exemption to this tax should be referred to your lawyer or notary.

Realtor:
A real estate agent will assist you in buying a property with the specifications that you want. Generally, your realtor will charge you no fee when you are using their services to purchase a property. They will receive payment from the person selling the property.

Survey:
Most lenders require a survey on the property they hold a mortgage on. The survey shows where the house is situated in relation to the property boundaries. This helps the lender to ensure that the building is located within its proper boundaries so that there are no issues with its security having to be moved. A survey on a residential property will usually cost from $300 to $400. In lieu of a survey, your lawyer or notary can also obtain a title insurance policy. Title Insurance protects the lender in case there are any boundary issues with the property. Title insurance usually ranges from $200 to $300 in cost.