2. Initial Cost
The Down Payment
that portion of the purchase price you provide yourself.
How does the value of your downpayment affect the
total cost of your home?
The larger the down payment, the less your home
will cost in the long run. With a smaller mortgage,
interest costs will be lower and over time, this will
amount to a significant savings.
4. Inspection Fee
A cost to have the home inspected before you finalize
the offer to purchase. Looking for areas needing
extensive repairs, and checking to see if home is
structurally sound.
Mortgage Application Fee
A fee charged by the financial institution for
processing your mortgage application.
5. Appraisal Fee
A fee charged to you by your financial institution to
have the home appraised to determine its value.
Sales Taxes
When purchasing a new home, (newly built)GST is charged
Service Charges
Fees for setting up your utilities, hydro, telephone, cable
6. Insurance Cost for High Ratio Mortgages
If you have less than 25% downpayment your
mortgage classifies as High Ratio. You pay an extra
1.25% 3% for insurance. This protects the financial
institution in case you can't pay.
Legal Fees
You require a lawyer to act on your behalf in the purchase.
7. Closing or Adjustment Costs
Payable when the sale is closed. (the day of posession) These costs include
property taxes paid by vendor prior to closing. Also, there can be an interst
adjustment. If your possession date is the first of the month, but your first
payment date isn't until 10th, there are 10 days you would be expected to pay
interest.
Land Transfer Tax
A tax paid to the Manitoba Land Titles Office at the time your
property is registered. It is calculated using the following chart:
On the first $30 000 nil
On the next $60 000 0.5%
On the next $60 000 1.0%
On the remainder 1.5%
