Step 1: Determine what you can afford
Purchasing a home involves one-time costs and monthly expenses. The largest one-time cost is the down payment and it usually represents between 5% and 25% of the total price of the property.
In addition to the actual purchase price, there are some other expenses which you might be expected to pay for...
|Mortgage Application and Appraisal Fee||At time of application|
|Property Inspection (optional)||At inspection||$350.00-375.00|
|Legal Fees||Closing||$399.00 - $599.00|
|Property Survey (sometimes provided by seller)||Closing|
|Land Transfer, Deed Tax or Purchase Tax (in Quebec within 3 months following signing)||Closing||1/2% of first $55,000.00 of mortgage plus 1% of balance|
|Mortgage Interest Adjustment and Take Over Fee (if applicable)||Closing|
|Adjustments for Fuel, Taxes, etc.||Closing|
|Mortgage Insurance (an application fee if applicable)||Closing|
|Home and Property Insurance||Closing and on-going|
|Moving Expenses||Date of move|
- mortgage payments
- condo fees (if applicable)
- property taxes
See the "What You Can Afford" worksheet to help you estimate the approximate price of a home you can afford.
Step 2: Obtain a pre-approved mortgage ->