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Over the past few months, we as a dedicated organization have been involved in the process of identifying how we can better serve all of your financial needs. In doing this, we have been following the concerns of the latest health issues in the world and understand that there is now a greater need for protection than ever before. Not only in the area of your health safety but also in protecting your lifestyle and the investments that you have worked so hard for. We would like to emphasize that we can offer Life Insurance, Disability Insurance and Critical Illness Insurance to help ease through some of these unforeseen hardships. As always, we want to be aware of what's needed in today's world through the eyes of our clients. Therefore, please feel free to call us at anytime if you want to review your insurance options. Also we always try to broaden our client's knowledge in many areas. We have included for your interest when purchasing a property things to remember. We hope it can be helpful and you enjoy it. THINGS TO REMEMBER WHEN PURCHASING A PROPERTY The initial costs of purchasing a home can add up surprisingly quickly, so be sure to plan for these fees so that you're not caught by surprise. We have given a brief explanation of these costs below. Inspection Fee You'll want to have an inspection performed by a professional building inspector before finalizing your offer to purchase. The inspection may bring to light areas where repairs or maintenance are required and will assure you that the house is structurally sound. Usually the inspector will provide you with a written report. If they don't, then ask for one. Mortgage Application Fee Some financial institutions charge a mortgage application fee to process your application. If your request for a mortgage is turned down, most will return the application fee to you. This application fee is also charged by some institutions each time your mortgage is renewed. Appraisal Fee The financial institution extending the mortgage will hire an appraiser to ensure that the property you are buying meets its criteria for a mortgage. You are generally responsible for the cost of the appraisal. Legal/Notarial Fees You will be required to retain a lawyer or notary to act for you in the purchase and mortgaging of the property, and you will be responsible for payment of the legal or notarial fees and disbursements. Fees for these services may vary significantly, so shop around before making your decision. Closing Costs When buying a resale home, the purchase price is always payable "subject to the usual adjustments" at closing. This means that any amount that the seller has already prepaid will be adjusted so that the home buyer pays the excess amount back to the seller, and vice versa. These adjustments can include:
Interest Adjustment Costs Interest adjustment dates can be a potential cash flow killer so please take note of your lender's policy. Most lenders expect the first mortgage payment one month after closing the purchase - however, if you close mid-month, some lenders expect the first payment at the beginning of the next month, two weeks before you would normally expect. Or they charge a pro-rated interest to make up the difference. When arranging your mortgage, ask how interest is collected to the interest adjustment date. By asking the right questions, you can avoid a cash flow crisis on closing. Land Transfer Tax Sometimes known as the "Welcome Tax", most provinces levy a one-time tax based on a percentage of the purchase price of the property. Property Insurance All homes must have adequate insurance coverage against fire, and other risks of loss, theft and liability. You may find that insurance on your new home is more costly than your previous residence. Your mortgage lender requires that you provide your lawyer or notary with proof that your insurance is in place by the closing date. Moving Costs Whether the move into your new home is a do-it-yourself affair or you hire movers, there will certainly be costs involved. If you plan to move during the peak spring/summer months, you should contract for service two to three months in advance if possible. Additional Costs Depending on the type of mortgage you choose and the province in which you buy, there could be additional costs, i.e., default insurance premiums (for low down payment mortgages), plus the cost of a survey of the property. A new home warranty fee could also be required if you're buying a new construction. New Home Costs Most new home
owners will likely need to buy certain items early on - kitchen appliances,
tools, gardening equipment, cleaning materials, perhaps some new furniture,
carpets or curtains. It's a good idea to tally up the costs of items
you think you'll need in the short-term and factor these expenses
into your initial costs. ***************************** Thanks for visiting our website. We hope that it was informative,
educational and that you enjoyed it. If you have any requests or suggestions
of something, which you wish to see on our site, please feel free
to e-mail us. We always appreciate your input. |
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12981 Keele St. Crawford Wells
Annex, 2nd Floor King City, On. L7B 1G2
Tel: (416) 524-7765 - Fax: (905) 833-8437