Mortgage Information

Mortgage Articles :: Closing Costs

This article summarizes the costs to purchase or refinance a home at The Mortgage Centre in Kamloops, British Columbia.

The Cost of Buying/Refinancing

Buying a home is one of the most important investments you will make in your lifetime. For most of us, our home represents our most valuable asset — and our largest debt. Finding the home that’s right for you requires proper preparation and professional advice.

In addition, you may find yourself either having to or wanting to refinance and access the equity in your home before your mortgage is completely repaid.

Your protection, rights and obligations as a property owner are critical. This article is intended to explain to you, those costs associated with purchasing and/or financing a home.

What Costs Are Involved?

  1. CMHC/Genworth Insurances

    If your mortgage is more than 80% of your purchase price or appraised value — whichever is lesser — you can expect to pay for mortgage insurance. The premium will typically range from .5% to 3.15% of the mortgage amount depending on the percentage of the home's value you want to borrow. This premium can be — and usually is — added to your mortgage.

  2. Appraisal/Inspection Fees

    If you want a conventional mortgage — under 80% of purchase price — you should expect to pay for an appraisal — usually $300.00 plus GST. Let your Mortgage Counsellor order your appraisal. Most lenders only allow fully accredited and approved professionals to do their property valuations.

    Some buyers prefer the additional security of an inspection by a Registered Home Inspection professional. Average cost for a home inspection is $350.00–$500.00 and up.

  3. Survey Certificate or Title Insurance

    Virtually all lenders will require a certificate of land survey showing that the house you are buying is properly and legally located on the lot, and compliant with local bylaws. Here’s what you can do to prepare yourself for this:

    • Ask your Realtor or the Vendor to provide you with a copy of the Survey Certificate in their possession — No Cost.
    • If the previous owner of the property cannot provide you with his last Survey Certificate, you may have to obtain a new one yourself, the cost of which could vary depending on location — Cost $350.00 and up.
    • Alternatively this cost could be mitigated somewhat by instructing your lawyer to purchase title insurance — Cost $200.00–$250.00 and up, again depending on what policy you want to purchase.

  4. Property Insurance

    You will have to insure your new home against loss by fire, third party liability and possibly other hazards for your lenders’ purposes and for your own comfort and protection. Your Insurance Broker can provide these costs for you.

  5. Adjustments

    Taxes, utilities and/or strata fees (if applicable) may have been paid in advance by the seller of the property and you will have to reimburse the seller for your share of these costs. Make sure you understand how these adjustments work to avoid any unexpected surprises. Your Mortgage Counsellor or lawyer can show you what to expect.

  6. Property Transfer Tax and GST

    While there may be an exemption for First Time Buyers in BC, Property Transfer Tax can be calculated as 1% of the first $200,000 and 2% of any amount over this — up to a maximum for your area. First time buyers financing over 70% of their purchase should qualify for an exemption from this tax. Have your Lawyer or Notary explain the best way to take advantage of this exemption and how to avoid having to repay it.

    On new construction, there are GST rebates that may be available to reduce the GST payable.

  7. Legal Fees

    Finally, you will almost always require the services of a lawyer or notary to ensure that you obtain good title to your home free from unexpected charges or encumbrances. A lawyer or notary will usually offer a free, confidential, initial consultation and fee estimate on any legal matter.

    Our clients have told us that one of the annoying uncertainties in buying a home is the unknown cost of legal fees. Therefore, The Mortgage Centre has arranged with a number of Lawyers in the area to offer the following packages — pricing assumes a standard transaction with little or no unusual charges on title:

      Legal Service Fee

    * Includes one discharge/payout — $25.00 per additional.
    * Includes all taxes, and land title registration fees.

    * Cash Purchase-Conveyance: $725.00
    * Purchase with preparation of a mortgage: $950.00
    * Re-finance with one mortgage discharge: $725.00

Please make note that the above prices are sourced in, and applicable to the Kamloops area only — some costs may differ slightly in other locations.

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