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Alec Schmidt

Alec Schmidt

Trainee in mortgage brokerage

Language(s):
French
English

aschmidt@planipret.com
(514) 262-0351

173A, boul. Saint-Jean-Baptiste , #4
Châteauguay, QC
J6K 3B4

The friendly guide of costs related to buying a property

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



Scenario: $275,000 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%



 

  • $275,000 - $13,750 = $261,250

  • Insurance premium of 4.00%: $10,450 (+ 9% tax payable to the notary)

  • $261,250 + $10,450 = loan of $271,700





  • Based on a 5-year fixed rate of 2.39*%

  • Amortized over 25 years

  • Standard monthly payment: $1,202.29/month


    *rate on November 15th, 2021




  • Municipal and school taxes: +/- $3,000

  • Welcome tax (transfer fees): $2,573.50

    Here is the breakdown for 2021*:

                Transfer tax of 0.5% for the first bracket (from $0 to $51,700), plus

                Transfer tax of 1% for the second bracket (from $51,700.01 to $258,600), plus

                Transfer tax of 1.5% (for cities other than Montreal) for the third bracket (from $25,600.01). 

    *Note that municipalities have the right to set transfer tax rates up to 3% on properties with a value over $500,000. As of January 1st, 2020, 33 cities had transfer taxes over 1.5% for properties higher than $500,000. You will need to confirm this information by reaching out to municipal authorities at the time of purchase.




  • Notary fees: +/- $1,200

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

  • Title insurance: $200 to $400

  • 9% tax on insurance premium: $940.50




  • Heating: +/- $200/month

  • Home insurance: $50 to $100/month

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

  • Condo fees: +/- $100/month

  • General upkeep: +/- $100/month




  • Home inspection: +/- $500 to $600

  • Moving: beer and pizza or +/- $1,000

  • Updating: to be determined



  • Mortgage payment: $1,202.29

  • Taxes: $250.00

  • Heating: $200.00

  • Home insurance: $75.00

  • General upkeep: $100.00

  • Life/disability insurance, etc.: $75.00

  • Condo fees: $100.00

  • Total: $2,002.29




  • Down payment: $13,750

  • Tax on insurance premium: $940.50

  • Notary fees: $1,200

  • Transfer fees: $2,573.50

  • Moving: $1,000

  • Home inspection: $550

  • Other: $ _____

  • Total: $20,014


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.).



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RATES OF

May 26 2022

TERMS BANKS MORTGAGE PLANNERS
1 Year Fixed 4.39% 3.09%
2 Years Fixed 4.94% 3.39%
3 Years Fixed 6.84% 3.89%
4 Years Fixed 6.84% 4.09%
5 Years Fixed 6.84% 4.14%
5 years Variable 3.35% 2.25%
7 Years Fixed 5.80% 4.34%
10 Years Fixed 6.60% 4.54%
HELOC 4.20% 3.70%

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