Anytime a property is sold, there is land transfer tax to be paid (except Alberta in which it is a property registration fee). These fees are paid by the buyer of the property. Keeping this in mind, all buyers must budget accordingly. This means that on top of having your down-payment saved up, you also need to have 1.5% of the purchase price saved up as closing costs.
There comes a point in your life, when you decide it’s time to buy your first condo/house. As a first time homebuyer, you’re not sure what to expect. There are many different questions on your mind, and one of the most common questions is, how much can I afford? In fact, you don’t need to be a first time homebuyer to ask this question.
All homeowners would love to be mortgage free as quickly as possible. Some succeed in paying off their mortgage faster by taking advantage of their pre-payment privileges. While others stay on their set regular payment plan, and finish their mortgage within the average 25 year time frame. However, there are quite a few people who opt for the option of refinancing their property, which in effect prolongs the life of their mortgage.
The famous mortgage insurance premium, otherwise known as CMHC fees. In fact they are known as CMHC fees since the Canada Mortgage and Housing Corporation is the biggest mortgage insurer in Canada! There is also Genworth and Canada Guaranty who provide the exact same service.
Why is that do you ask? Well statistics show that the average person entering into a 5 year mortgage term, only stay in the term for just under 4 years… Makes sense! You never really know what the future will bring, you might find a better interest rate and will want to switch over to the better rate, or maybe you need money for renovations, maybe even to pay of some credit card bills.