Simulation of expenses related to the purchase of a $400,000 property

For those looking to find out the costs related to buying a property, here is an example:

Scenario: $400,000 home with a 5% down payment



 Standard rate:

• 95% financing: 4.00%

• 90% financing: 3.10%

• 85% financing: 2.80%

• 80% financing: 2.40%

• 75% financing: 1.70%

• 65% financing: 0.60%

• $400,000 - $20,000 = $380,000

• Insurance premium of 4.00%: $15,200 (+ 9% tax payable to the notary)

• $380,000 + $15,200 = loan of $395,200

• Based on a 5-year fixed rate of 6.00*%

• Amortized over 25 years

• Standard monthly payment: $2,528.52/month
  
  
  *average rate on September 2023

• Municipal and school taxes: +/- $4,500

• Welcome tax (transfer fees): $4,343.00
  
  

            
  
  
  
  

• Notary fees: +/- $1,900

• Potential adjustments (condo fees, taxes, oil, etc.)

• Title insurance: $200 to $400

• 9% tax on insurance premium: $1,368.00

• Heating: +/- $250/month

• Home insurance: $50 to $150/month

• Life/disability/critical illness insurance: $50 to $100/month

• Condo fees: +/- $150/month

• General upkeep: +/- $200/month

• Home inspection: +/- $500 to $600

• Moving: +/- $1,500

• Updating: to be determined
  
  

• Mortgage payment: $2,528.52

• Taxes: $375.00

• Heating: $250.00

• Home insurance: $75.00

• General upkeep: $200.00

• Life/disability insurance, etc.: $75.00

• Condo fees: $150.00

• Total: $3,653.52
  
  
  

• Down payment: $20,000

• Tax on insurance premium: $1,368.00

• Notary fees: $1,900

• Transfer fees: $4,343.00

• Moving: $1,500

• Home inspection: $550

• Other: $ _____

• Total: $29,661

Are you wondering if you qualify for a mortgage loan? Contact us to analyse your situation and find out the best options for you (rate, conditions, etc.).

*source : http://www.calculconversion.com/calcul-taxe-de-bienvenue-mutation.html

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