How much it actually costs to buy a house?
Closing costs usually include:
1. lawyer (not necessary in the US where you can use what they call a 'title agent')
1. lawyer (not necessary in the US where you can use what they call a 'title agent')
2. if with a bank: appraisal
3. usually recommended to do an appraisal
4. plan for some down payment
The way the different actors involved get paid:
1. realtor receives a commission, including in the price you pay for the property
1. realtor receives a commission, including in the price you pay for the property
2. the mortgage agent is paid by the financial institution who finances you
When can I put 5-10-20% down?
The rules are set by CMHC, the regulatory body for mortgages and real estate investing in Canada
5% - when you buy your own home, has to be a single home
10 % - when you move into the property you are buying, a property that has 2 units or more
20% - the regular situation
35% - bank won't be asking for much information from you
Note! Any purchase with less than 20% down will require you to take a default insurance (with CMHC or Genworth), which amount to 1-2% of the total mortgage and is usually rolled into the mortgage.
No comments:
Post a Comment