This is a fee that is payable to the mortgage insurer to process your application if you are applying for a high ratio mortgage (Less than 20% down payment).

 

High ratio mortgages (those that are less than 20% down payment) require mortgage insurance against default. The cost of the mortgage insurance is typically added to the amount of the mortgage.

 

The seller may have prepaid a number of property expenses and will need to be reimbursed by the buyer. These expenses may include but are not limited to property taxes, municipal utilities as well as any pre-paid strata fees if they apply.

 

Lawyers or Notaries will charge a fee for their professional services which includes drawing up the transfer and mortgage documentation, and conducting various searches. Disbursements are expenses incurred, such as registration fees in the land title office, search fees, photocopy, telephone fax etc.

 

Appraisals are always required on uninsured mortgages before they are funded. An Appraisal gives the lender an overall picture of the property and confirms the value to insure that they have proper security for the mortgage.

 

When a property changes hands typically there are property transfer taxes involved. If the fair market value is $200,000 or less, the tax is 1% of the fair market value. If the fair market value is greater than $200,000, the tax is 1% of the fair market value up to $200,000, plus 2% on the portion of the fair market value that is greater than $200,000. For example if fair market value of the property is $150,000 tax payable is: 1% of $150,000 = $1,500, if fair market value of property is $250,000 tax payable is: 1% of $200,000 = $2,000 plus 2% of $50,000 = $1,000 for total tax payable of $3,000. If you are a first time home buyer there is a program in British Columbia designed to help First Time Home Buyers purchase their first home. The fair market value threshold for eligible residential property is $425,000. A proportional exemption is provided for eligible residences with a fair market value of up to $25,000 above the threshold (i.e. up to $450,000). To qualify for this program you must have not owned an interest in a principle residence before, the property must be owner occupied and you must retain ownership of the property for the first year. 

 

In more cases than not, lenders will require that a survey certificate is submitted prior to the mortgage funding. In lieu of a survey certificate, most lenders will accept title insurance which costs much less than having a survey completed.

 

All Lenders will require that you have fire insurance in place before taking possession of the property showing them as a loss payee. Cost of fire insurance varies, depending on the type and size of the property as well as any extras that you may want to add onto the policy to cover your personal possessions etc.

 

Home Inspections are for the benefit of the buyer and are recommended for all home purchases. A home inspection will guarantee that there are no major problems that you should be aware of. The home inspector will inspect hundreds of exterior and interior components inside and outside of the property. This gives you peace of mind and the information you need to make the right decisions. The following components and systems are included in this inspection: Roof, Windows, Heating and Cooling Systems, Driveways and Sidewalks, Foundation, Electrical, Plumbing, and much more.

 

If you are purchasing a newly constructed home, you will be required to pay GST on the purchase price of the home. After July 1, 2010 this will change into HST and will cost you 12% of the purchase price instead of the current 5%.

 

 

Stewart Mortgage Corp. has arranged through a number of our partners in the Kamloops Area to have some of these costs slightly reduced for our customers, and as an added bonus on completed deals we will pay up to $200 towards your appraisal or home inspection. Contact us today to sit down for your no obligation free consultation to get your full personalized quote.

 

250.572.0762 - jamie@stewartmortgage.ca