What are closing costs?
Closing costs are the additional fees associated with the purchase of your home that are in addition to the actual purchase price, such as legal fees and disbursements, land transfer taxes and moving expenses. Please note that closing costs are separate from your down payment monies required.
For CMHC (Canada Mortgage and Housing Corporation), AIG Insurance, and Genworth Financial Canada insured mortgages, you must also provide evidence of available cash for closing costs equal to 1.5% of the purchase price. These funds may be borrowed and repaid over a period of 12 months.
What will my insurance fees be?
Any purchase where the down payment is less than 20% is considered a high-ratio mortgage, and the mortgage must be insured by the Canada Mortgage and Housing Corporation (CMHC), Genworth Financial Canada, or AIG Insurance. The insurer will charge a fee for this insurance. The amount of the fee will depend on the amount you are borrowing and the percentage of your own down payment. Typical fees range from 0.5% to 3.35% of the principal amount of your mortgage. This amount can be paid up front or added to the principal portion of your mortgage.
Why should I use a mortgage broker over my bank?
A Mortgage Broker is an agent who specializes in finding and placing Mortgage Financing on Real Property (houses, condos, etc.) We will guide you through the complex process of setting up a mortgage for your new or existing property. Mortgage Brokers work for you and look out for your best interest, and they are free! They represent you to lenders, appraisers, and various other professionals involved in real estate transactions, similar to the way a lawyer would represent you in a legal matter. A Mortgage Broker is an expert who knows the ins and outs of each mortgage product and has the knowledge and experience to recommend the correct loan for your specific needs.
Buying a house is likely to be one of the largest and most important purchases you are ever going to make. It is our mission to represent our clients and get them the best possible deal! We are not lenders. We have no interest in getting higher rates, or larger fees. We are usually paid finders-fees by the banks, not by our clients.
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