Friday, October 19, 2012


Some things to keep in mind as a buyer:

Deposit – paid upon your offer being accepted and possibly increased once subjects are removed OR paid only when subjects are removed. This is held in trust and forms part of your downpayment

Downpayment – paid upon closing and is a minimum of 5% of the purchase price.

Mortgage Insurance Premiums (CMHC or Genworth) - required when downpayment is less than 20% of the purchase price. Premiums may apply in some circumstances.

Appraisal Fees – an appraisal gives the lender a professional opinion of the value of the home you are buying, building or refinancing. Only required in some circumstances.

Home Inspection – this is not required to get mortgage financing but is opted for by many buyers. Many contracts are written as “subject to an acceptable home inspection”.

Land Survey or Title Insurance – most lenders will require a current Land Survey or Title Insurance

Fire Insurance – you will need to provide for adequate Fire Insurance to cover the value of the home (not contents) and to name the Loss Payable as the mortgage lender. Strata Properties are usually covered under the Strata Corp’s blanket policy.

Legal Fees – a lawyer or notary will charge you professional and disbursement fees for conducting searches, registering the mortgage and any Title Transfers.

Closing Costs – you should expect some closing adjustments at your lawyer’s office for bills that the seller(s) have prepaid such as property taxes.

Mortgage Broker Fees – rarely apply to most mortgages but can in some circumstances

Purchases Taxes (HST/GST) – please confirm if applicable with your lawyer.

Property Transfer Tax – 1% of the first $200,000 and 2% of the balance (ex. $6000 on a $400,000 purchase) First Time Home Buyers may be eligible for an exemption. Visit the Government of B.C. website for details.

If you are looking to buy a home contact me today:

Dependably yours,

The Welcome Home Team
Century 21 Assurance Realty Kelowna
Cell: (250) 859-5990
Office: (250) 869-0101
Fax: (250) 869-0105

Thanks to Karen and Belle for the info:
Mortgage Brokers
C:  250.859.4126
O:  250.869.0101
F:   1.877.803.6496

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