COSTS TO SELL: There will be legal fees, Real estate fees, GST on Realtor fees & property taxes which will be adjusted based on your closing date. TAXES: If your closing date is February then you would see a charge for January and February on your statement of adjustments for the tax amount that you would owe for these 2 months. The buyer will use these funds to pay for the taxes when they are due. If you close in May for example go ahead and pay your taxes in April when they are due and your lawyers will make sure the buyers credit you on your statement of adjustments for the balance of the year June to Dec 31st. TIP-HOME OWNERS GRANT: This is not retroactive once you close. Your home owners grant for the home you are selling must be declared and acceptable prior to closing or you will lose your credit. MORTGAGE INFO: If you are buying again, most mortgages are portable. If you are needing more funds then the bank can blend the two payments, your existing mortgage payment and the new mortgage payment for the additional funds. If you are paying out your mortgage and taking out a new mortgage it is wise to call and ask what the penalty would be along with a payout statement. TIP-RENEWING A MORTGAGE: It is wise to still shop around if you are renewing with the same bank as most banks will match or beat other rates. Most people just renew without shopping around because it's convenient, but they will negotiate to keep your business. Feel free to call us and we can get an estimate for you to help with this step.
COSTS TO BUY:
DEPOSIT: A deposit is needed once you remove subjects usually in the amount of 5% of the purchase price. This is due in the form of a bank draft and payable to your Realtor's Realty office. DOWN PAYMENT: 5% up to $500,000.00 and 10% on the balance up to $1,000,000.00 If you are purchasing over $1,000,000.00 then you will require 20% down payment. PROPERTY TRANSFER TAX: This is applicable even if you are a first time buyer if you are buying a home priced over $500,000.00. If you are buying less than $500,000.00 and a first time home buyer then you will save this fee if you are moving into the home. TIP -PROPERTY TRANSFER TAX: If you are buying with someone who is a first time buyer you may be able to have one person on title and the other can be set up as a guarantor saving one of the property transfer tax credits for a future purchase. This fee is charged at closing on your statement of adjustments. 1% on the first $200,000.00 and then 2% on the balance. If you are buying a brand new home and you will be living in the home then Property Transfer Tax is not applicable if you are buying under $750,000.00. If you are going to rent out the new home then you will be charged this fee. TIP- SELLING PRIOR TO 12 MONTHS: If you sell before you have lived in the home for a period of 12 months then you will be charged the property transfer tax. The other fees to close will run approximately $2500.00 which will include an inspection of approx $400-$600.00 depending on the size of the home, tax adjustments, legal fees, miscellaneous & appraisal. These fees are charged at closing except the inspection fee. The cash needed when buying a home at subject removal ( 7 to 10 days after writing the offer) will be the deposit and inspection. Everything else is charged at closing. The deposit gets deducted from the total amount of down payment required. CMHC is a fee that is charged to insure your mortgage if you are putting less than 20% down under $1,000,000.00. This % is charged on the amount of borrowed funds and added to your mortgage, no cash is needed for this fee. 5% down the fee is 4.0%, 5.1-10.00% the fee is 3.10%, 10.1-15.00% the fee is 2.8% and 15.1-20.00 the fee is 2.4%. STRATA MOVE IN FEE: Most strata charge a fee to secure an elevator anywhere from $50.00 to $200.00. The bylaws will provide this amount.