Plan early for closing costs.
Appraisals, solicitor fees, tax/utility adjustments, taxes, home inspections, surveys, and other charges can add up very quickly to thousands of dollars that you weren’t planning to spend when you first made the offer to purchase.
Property Transfer Taxes may apply in your province too, so make sure you know that ahead of time by asking the realtor you are working with how much they will cost.
Hint! Lenders might have an ‘approved’ list of legal firms that you must use if you get your loan with that institution. However, be sure to choose a lawyer or notary as soon as you can. If you already have a Notary or Lender that you want to work with, be sure to tell your realtor and mortgage broker. The same goes for appraisers.
Hint! Early in the process of planning, take time to list what closing costs you can expect and when they will need to be paid.Your real estate representative, solicitor and Caroline can work with you on this and there are many resources on the web.
Hint! An interest adjustment payment may also be part of your closings costs. This is the cost of interest that you are paying from funding date until your next payment. In most cases, this is due on closing day for new mortgages (vs. re-finance).
Hint! Talk to your Realtor about other potential costs like home inspections, well testing and septic/oil tank inspections.
Mortgage Options that can help...if you think you could use a little extra cash on closing, ask Caroline about a Cash-Back mortgage. You may not get the deepest discounted rate possible, but with rates at a historic low, this may be a good option for you.
If you intend to do some serious renovations right after you buy, explore the option of a Purchase Plus Improvements mortgage. Ask Caroline for details today.