First Time Home Buyers Information

What can I expect for Closing costs?


It is recommended that you have an additional 3% for your closing costs. This is in addition to your down payment. Some of the closing costs you can expect to incur, are, Lawyers fees, Deed Transfer Tax (up to 1.5% of the cost of the home), Property Tax Adjustments, Home Inspection Costs, etc. On a $200,000 home purchase, your typical closing costs would be approximately $4-5000. If the home is heated with oil, you will need to pay for a full tank of oil, an additional $7-900 (the owner is required to have the oil tank filled the day before closing). In recent years, many lawyers are recommending Title Insurance. I strongly recommend adding Title Insurance for every purchase or when you re-negotiate your mortgage. Title Insurance costs approx $250.

What is Title Insurance?


Title insurance is unlike any other kind of insurance. It is not house insurance which only protects the contents of your home or its structure and for which you have to pay a monthly or annual premium. Unlike house insurance, you only pay a one-time premium with no deductible.


Title insurance is distinctive in that it protects your ownership or title against losses incurred as a result of undetected or unknown title defects, for as long as you own your home. Even if you are the rightful owner of your home, there are instances such as real estate title fraud, when your title can come into question.

What is CMHC Mortgage Loan Insurance?


Mortgage loan insurance is typically required by lenders when homebuyers make a down payment of less than 20% of the purchase price. Mortgage loan insurance helps protects lenders against mortgage default, and enables consumers to purchase homes with as little as 5% down payment — with interest rates comparable to those with a 20% down payment.


To obtain mortgage loan insurance, lenders pay an insurance premium. Typically, your lender will pass this cost on to you. The premium payable is based on a percentage of the home’s purchase price that is financed by a mortgage. The premium can be paid in a single lump sum or it can be added to your mortgage and included in your monthly payments.


Mortgage loan insurance is not to be confused with mortgage life insurance which guarantees that your remaining mortgage at the time of your death will not be a burden to your estate. For more info, please click this link: http://cmhc.ca/en/co/moloin/index.cfm


What is the RRSP Home Buyers Plan?


The Home Buyers’ Plan (HBP) allows you to withdraw up to $20,000 from RRSPs to buy or build a qualifying home for yourself (as a first-time home buyer) or for a related disabled person. You may still be considered a first-time home buyer if you own a rental property or if you have not recently owned a home.


This is a temporary “loan” from your RRSP — you must pay back the amount you borrow from your RRSP for the Home Buyer’s Plan within 15 years or it will be added to your taxable income.

You can make withdrawals from more than one RRSP as long as you are the annuitant (plan owner). Typically, you will not be allowed to withdraw funds from a locked-in RRSP. For more info, please click on the following link: The Home Buyers’ Plan (HBP) allows you to withdraw up to $20,000 from RRSPs to buy or build a qualifying home for yourself (as a first-time home buyer) or for a related disabled person. You may still be considered a first-time home buyer if you own a rental property or if you have not recently owned a home.


This is a temporary “loan” from your RRSP — you must pay back the amount you borrow from your RRSP for the Home Buyer’s Plan within 15 years or it will be added to your taxable income.You can make withdrawals from more than one RRSP as long as you are the annuitant (plan owner). Typically, you will not be allowed to withdraw funds from a locked-in RRSP. For more info, please click on the following link: https://www.nscu.com/Investments/RRSPs/RRSPHomeBuyersPlan/