Sunday, 2 November 2008

Buying costs

Once you've found the house and made an offer, you have to get approved for a mortgage with a particular rate of interest, make the inspection and wait... The mortgage broker will let you know who is going to be your particular lender and how much will be the rate of interest you'll pay. If you are giving 5% or less of initial, you have to have a mortgage insurance that will guarantee the bank their money in case you can't pay.

So, how long do you have to wait for the closing date? Well, that depends on different factors, did you sell your house? did the sellers found a house? Do you have the money? etc. The wait can be from 2 weeks to 6 months, in our case we are waiting 2 months from the date of the offer.

What do we do while we wait? Get the money!!! These are the things you need to pay when buying a house of $336.000 with $10.000 of deposit and 5% of downpayment:
- Lawyers and transaction Fees: aprox. $900
- Land Transfer tax: aprox. $3500
- Mortgage fee (CMHC fee+ references): aprox. $380
- DOWNPAYMENT: $16800 (5%) - $10.000 = $6800

So, after paying $10.000 with the offer, we still need to pay aprox. $12.000 more the day of the closing ;) So, don't forget to add all the other things you need to pay when buying!

And when calculating what you are going to pay monthly for your house, don't forget:
- Mortgage
- Insurance
- Utilities
- Taxes


Zhu said...

I think so many people don't budget as well as you... Man, you are organized!

Nelson said...

Refund Program for First-Time Homebuyers

First-time homebuyers may be entitled to a refund of Ontario's land transfer tax, up to a maximum of $2,000. This refund is usually claimed at the time of registration. If not, the refund may be claimed directly from the Ministry of Revenue.

To claim a refund, you

* must be at least 18 years old;
* must occupy the home as your principle residence within 9 months after the date of transfer; and
* cannot have previously owned a home, or an interest in a home, anywhere in the world

In addition,

* your spouse can not have owned a home, or an interest in a home, anywhere in the world while being your spouse.

If not claimed at the time of registration, refunds must be requested within 18 months of registration.

Seraphine said...

and curtains. don't forget the curtains!
when we bought our house, we also had to buy the washer/dryer and a refrigerator.

Aiglee said...

Thank you Zhu :D

Thanks Nelson, I knew about it and I think we are already getting it, but I'll make sure so I can use that opportunity :)

That's true seraphine, the thing is that our house comes already with the blinds which we like, as well as the washer/drier, refrigerator, kitchen and dishwasher :D So, nothing we have to buy in that department :D