First of all, you surely want to know that the property is in good condition and doesn’t need major repairs immediately, so you will have to have a professional property inspection done. Set aside $500 for a professional building inspection.
Then, when you sign at the notary’s office, you must hand over a certified cheque for the down payment (a minimum of 5% of the price of the house.
Other additional outlays to be made at the notary’s office:
- The 9% tax on the insurance premium (CMHC, Genworth).
- Adjustment payments of property taxes (municipal and school taxes).
- The notary’s fee.
- Other adjustment payments such as the cost of filling the heating oil tank
Lastly, you will receive a bill from the municipality for the land transfer tax (usually known as the “taxe de bienvenue” in Quebec) 1 to 3 months after signing at the notary.
Below is an example of the financial outlay on the purchase of a $200,000 property with a 5% down payment, i.e. $10,000:
Inspection |
$500
|
Down payment |
$10,000
|
CMHC premium, a 9% tax on 3.60% de $190 000 |
$615.60
|
Notarial fees |
$1,250
|
Property tax adjustment payments (1/2 of $4000) |
$2000
|
Land transfer tax (taxe de bienvenue) |
$1,750
|
Total: $16,115.60
We did not list the moving or entry costs in the chart (reconnecting the phone, Hydro-Quebec, etc.) because you are probably already familiar with these costs.
If you have any questions concerning the purchase of a property or on mortgage loans, don’t hesitate to contact me for expert advice!