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 1^st, 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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