Down payment and Closing Cost options

Whether you are buying or selling a home, there a
re a number of closing costs to consider. The rule of thumb is to allow 3-4% of the value of the home for these costs- and this is in addition to your down payment! It would be my pleasure to meet with you , when you have time, to go through these costs in detail so that you are better prepared!

Here is a list of typical closing costs:
*Home Inspection fee                                     *Title Insurance/ Property Insurance
*Survey (if needed)                                            *Appraisal Fees (lender may cover)
*Status Certificate (condo only)                        *Property Tax /Utility adjustments
*Deposit with offer (4-6% of value)                   *Lawyer closing fees

*Land Transfer tax (2 taxes- MLTTand PLTT- if property is in Toronto)
Here is a link to a Land transfer tax Calculator

CMHC- understanding the new premiums
With 20% down payment (deposit with offer- balance on closing date) there is no mortgage loan insurance typically required.
With a 5- 19.99% down payment mortgage default insurance is required and ranges from 1.80% to 3.60% available through CMHC or Genworth Financial. In general, the lower the down payment percentage the higher the premium! This amount is usually added to the total mortgage amount.
 In 2016 a new rule is in effect- properties between $500,000 to $1million getting an insured mortgage will need to put more down. The minimum down payment- up to a $500,000 remains at 5%, however it is now 10% on the next $500,000 ie A $750,000  purchase will require an additional $12,500 or 2.5 % of that value.
Here is a link to a CMHC Mortage Calculator