Check Is Canadian Market Forming Bubble or Have Deep Roots ?

Peter Norman, Chief Economist, Altus Group is very optimistic about Canadian Economy and also predicts that increase in interest rate would be so modest until at least 2015.


This mean the lower interest rate are here to stay, that mean there is no slow down for the real estate market in Canada.


Watch the interview in video below..


http://www.theglobeandmail.com/report-on-business/video/video-hot-canadian-housing-bubble-forming/article2399537/


In my view, For Bank Of Canada it would be difficult to hit ground running while increasing interest rate, because markets are now used to with lower interest rate.  If Bank Of Canada start jacking up rate at faster pace, market may react adversely and fall drastically.

Average Resale Home Price In Toronto Area

In Today's Market What Home Buyer Should Do to Win Bidding ?

Here are some things that can help you come out ahead:

1) Decide and focus on area, where you are intended to buy your dream home

2) Get mortgage approval from lender, set clear limits, what maximum you can afford. 

3) Work with a professional REALTOR. You need to know the real market value of properties. Many sellers deliberately list their property at 5 to 25 per cent below market value to bid it up.

4) If you like a house, and thinking to put an offer, it is advisable to conduct home inspection, so that you can put an offer without any condition. 

5) To demonstrate you are a serious buyer, offer at least $15000 - $20000 as deposit. 

6) Permit your REALTOR to share your some of personal with seller. Home buying or selling is an emotional process, most of seller do care what type of people are buying their dream home. 

7) Most importantly play within your limit, discuss with you REALTOR and decide the maximum price you want to offer, if you don't get for that price, it is better to walk away and try with another property.

CHECK INTEREST RATE ALL OVER WORLD

How REALTOR Helps ?

Why You Need A REALTOR ?

Let me ask you some questions ! 

•  Do you cut your hair your self ? I heard "No". Am I right ?
•  Do you buy any electronic item before visiting several stores and asking several sales person ? You said "No", right ?
•  Why do you go to a used car dealer or a new car dealer, when you buy your car ?

Because you want your purchase to be a reliable, long lasting and trouble free. All purchases listed above are from $15 to around $30000.   
Though all above purchases are replaceable or quickly repairable, you always prefer to get expert advise or use an expert. 
So let me put it this way, when you go out to buy your most valuable and emotional purchase of life, which is your HOME SWEET HOME, I am sure you would like to use an expert (a REALTOR), right ?
I am sure, you wish your HOME free of any undisclosed deficiencies. What type of deficiency you may encounter ? Do you know ? 
Don't worry you are not alone most people don't know.
Let me show you some of the issues,

1) MOULD in Attic



2)Leakage in the basement



3) Do you know life of the roof ? How much it would cost you to replace ?



4)Do you know the difference between Fixtures and Chattels ? Do you know mirror in the living room is considered as a chattle ?



There are so many other things which, usually seller don't know or they don't disclose. 

So why REALTOR ? Because they are trained and licensed to work as a Real Estate Sales person.

Read more below why you should trust a REALTOR ? 

As a member of their local real estate Board, REALTORS® have their finger on the pulse of the housing market and are in daily contact with buyers potentially interested in your home.

You can trust a REALTOR® to protect your interests and to look after details. And all the while, you're an active partner in the process, working with a REALTOR® every step of the way. So the more you know about buying and selling homes, the better your working relationship with a REALTOR®.

A REALTOR®’s commitment to high standards of professional conduct works to the advantage of buyers and sellers alike.

A REALTOR® is knowledgeable about developments and trends in real estate. A REALTOR® will get you the facts: comparable prices, neighbourhood trends, housing market conditions and more.

A REALTOR® is committed to ongoing education to increase competence and effectiveness in real estate trading.

Every REALTOR® has been trained and tested. And REALTORS® are bound by a strict Code of Ethics and Standards of Business Practice that ensure fairness to all parties in a transaction.

A REALTOR®'s pledge is to be honest in disclosing property information and forthright in providing the facts needed to help you make one of the most important decisions of your life.

And remember, only a REALTOR®, a member of The Canadian Real Estate Association, has access to the Multiple Listing Service®, Canada's most powerful real estate marketing system.

Thank you for reading and understanding. Please leave your comments even if you are agree or not. 

You can contact me for any of your real estate related info in GTA area. 

Ritesh The Realtor @ 647-281-3424

ritesh.realtor@gmail.com

BEST MORTGAGE RATES

Today as we climb up on the Temperature front the Mortgage Rates are going down. I have got the Best Rates in Town with a never before rate of 3 years fixed at 2.69% and now Variable rate for 5 years at Prime - 0.25%.

  

Term	Rate
Open	6.30%
1 yr	2.75%
2 yr	2.59%
3 yr	2.69%
4yr	2.89%
5yr	2.94%
10 yr	4.49%
VRM	P-.25%

The above promotions may be terminated or modified at any time without notice. Rates are subject to change at any time.  Thursday,  22nd of  March 2012

Regards,

 --
Mihir Oza

647-710-7374
Mortgage Agent (License # M11000672)
Verico The Mortgage Practice

My Motto: Right Advice. First Time, Every Time.

Special Mortgage Offer - Save on Set Up Fees on the 4 Year Special Offer!

As the mortgage market continues to be very competitive, I am pleased to now offer an unadvertised customer offer in conjunction with TD Bank's 4 Year Special Offer of fixed - 2.99%!  This offer is available on all NEW mortgage applications submitted between March 16^th, 2012 and March 30^th, 2012 and funding by May 31, 2012 and the following conditions apply.

 

Customers can save up to $500 on refinance applications to cover in-house registration fees or $500 in cash to cover legal fees and disbursements if choosing to use a solicitor.  Customers can save up to $500 to cover the discharge fee from another lender on a Switch/Transfer applications.  

 

Important Details:

• Minimum new mortgage amount of $50, 000.
• Only available on the 4-year fixed rate term at 2.99%.
• The new mortgage must payout a mortgage with another lender.  Mortgage set ups for any other purpose, such as a purchase transaction, are not eligible. 

--

Mihir Oza

647-710-7374
Mortgage Agent (License # M11000672)
Verico The Mortgage Practice

 

My Motto: Right Advice. First Time, Every Time.

Home ownership becoming more affordable despite rising debt

Despite ongoing concerns about household debt, home ownership is becoming more affordable in Canada, not less, says new research by the Royal Bank.

RBC's latest report says home affordability actually improved in the final months of 2011 for the second consecutive quarter, thanks to softening house prices and income gains.

CLICK HERE TO READ FULL ARTICLE

 

Best regards,

 

Ritesh Joshi
Your Next Door Realtor

www.riteshtherealtor.com

647-281-3424

2.99 % Mortgage rate...How good is it ?

Friends,

Ever since mortgage rates, 2.99 % for 5 year fixed for 25 years of amortization were announced by banks. I got so many inquiries, asking how much can we afford with this interest rate ?

Is it a good rate ? what are the pros and cons ? 

I explained pros and cons back in January when BMO offered discounted rate first time.

Don't worry I am going to repeat those pros and cons, however before that, have a look at the table below.
 I have tried to show that if a family can afford to pay $1000 in rent, they can easily afford a condo with a price tag of $250000, of course you have to consider the cost of property tax and utilities.  

Now the pros and cons of these low low mortgage rates offered by BMO! 

In my view it's a very good deal for those home buyers who can afford 25 years amortiazation. But for those who are on the border, they have option to go to other big banks RBC, TD, CIBC - all are offering low rates but for 4 years and the good thing is 30 years amortization.

Here are some comparision between traditional 30 years mortgage and 25 years with @ 2.99 %

           Traditional Mortgage                                                             2.99 % Mortgage

1)     30 years amortization                                                                  25 years amortization

2)     20 % Once a year lump sum payment                                       10 % once a year lump sum payment

3)    You can double up a payment                                                     You can't skip or double up a payment.

4)    You can refinance or switch your lander                                     You can't refinance or switch your lander

--

Best regards,

Ritesh JoshiYour Next Door Realtor

www.riteshtherealtor.com

647-281-3424

GTA REALTORS® RELEASE RESALE MONTHLY MARKET FIGURES

Toronto, March 5, 2012 –


Greater Toronto REALTORS® reported 7,032 sales in February 2012 – up 16 per cent compared to February 2011. New listings were also up over the same period, but by a lesser 11 per cent to 12,684. It is important to note that 2012 is a leap year, with one more day in February. Over the first 28 days of February, sales and new listings were up by ten per cent and six per cent respectively.
“With slightly more than two months of inventory in the Toronto Real Estate Board (TREB) market area, on average, it is not surprising that competition between buyers has exerted very strong upward pressure on the average selling price. Price growth will continue to be very strong until the market becomes better supplied,” said Toronto Real Estate Board President Richard Silver.
“It is important to note that both buyers and sellers are aware of current market conditions. This is evidenced by the fact that homes sold, on average, for 99 per cent of the asking price in February,” continued Silver.

Check What RBC(Royal Bank Of Canada) says about 2.99 % Interest Rate

Call me if you are interested in these  rates @ 647-281-3424.(Ritesh Joshi) 

I will hook you up with Royal Bank Mortgage Specialist

Mortgage rates - 9th March 2012

Snapshot of Best available rates as of 9th MARCH 2012.

3 years - (2.69%)

4 years - (2.89%)

5 years - (2.99%)

3 years variable - (Prime - 0.15%)

5 years variable - (Prime - 0.10%)

--
Mihir Oza

647-710-7374
Mortgage Agent (License # M11000672)
Verico The Mortgage Practice

 

My Motto: Right Advice. First Time, Every Time.

Mortgage rate staying same....Bank Of Canada...and low rate gift from BMO and RBC 2.99 % for 5 years

Once Again No Change To The Bank of Canada's Key Rate

The Bank of Canada announced earlier today that it is keeping its key policy rate unchanged, exactly where it's been since September 2010, which means no changes for variable rate mortgage holders. The longest recorded rate pause continues – 12 consecutive meetings.  As a result, the prime rate for most lenders should stay at 3%.  

The Bank's statement was slightly more optimistic than in recent announcements, saying "the heightened uncertainty around the global economic outlook has decreased" although they note that "the global economy is still expected to grow below its trend rate." With respect to the U.S and Canada, they state that "the U.S. expansion is proceeding at a modest pace" and "that the outlook for the Canadian economy is marginally improved."  Canadian debt levels continue to be an ongoing concern as "spending is expected to remain high relative to GDP as households add to their debt burden, which remains the biggest domestic risk."

The Bank's next rate decision is scheduled for April 17.

We're heading into the spring market with historically low 5 and 10-year fixed rates. 

Today BMO and RBC declared they are offering 2.99 % fixed rate for 5 years mortgage. The difference between BMO and RBC is that, BMO offers this rate for 25 years amortization where as RBC is offering for 30 years which is a very good deal for those who is in process of buying their home.

 

Best regards,

Ritesh JoshiYour Next Door Realtor

www.riteshtherealtor.com

647-281-3424

Real Estate Market Watch

Do you know how much RENT increase approved by Ontario Government.

There are several of this blog readers are renter in Ontario. In Ontario the Ministry of Municipal Affairs and Housing has released the province’s rent increase guideline for 2012. The 2012 guideline will be 3.1 per cent. The new rent increase guideline applies to a rent increase that begins any time between January 1, 2012 and December 31, 2012.

For previous years’ increase guidelines,

please see the table below.

A landlord may increase a current tenant’s rent once per year by an amount not to exceed the guideline

• 2012       3.1%
• 2011       0.7%
• 2010       2.1%
• 2009       1.8%
• 2008       1.4%
• 2007       2.6%
• 2006       2.1%
• 2005       1.5%
• 2004       2.9%

It establishes the maximum amount that a landlord can increase a tenant’s rent without making an application to the Ontario Rental Housing Tribunal.

My Ad

Basement Apartment are legal in Ontario.

For those home owners, who has finished basement and has been built according to building code and fire safety code, now you can legalize any second dwelling in a single family home.  Bill 140 was changed to accommodate above mentioned change.

This change to Bill 140 allows basement apartments to become legal and which can be rented out.  

Due to this change, those who likes to buy a house with basement apartment can show bank, their current income as well as expected income from renting out the basement apartment.

And definitely this change will drive the demand for the houses with basement apartment. 

Best regards,

Ritesh JoshiYour Next Door Realtor

www.riteshtherealtor.com

647-281-3424

 

Don't Forget To Claim Your Cost Associated with Purchasing a HOme

Did you buy your first house in Canada? Wonderful !! Do you know you can claim cost associated with purchasing  a home when you file your tax return ? 

It is a time to file you tax return and so don't forget ..... READ BELOW..

First-Time Home Buyers' (FTHB) Tax Credit

The costs associated with purchasing a home, such as legal fees, disbursements and land transfer taxes, can be a particular burden for first-time homebuyers who must pay these costs, as well as save money for a down payment. To assist first-time homebuyers with the costs associated with the purchase of a home, the Government of Canada introduced a FTHB Tax Credit in 2009 — a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009.

--

Best regards,

 

Ritesh Joshi
Your Next Door Realtor

www.riteshtherealtor.com

647-281-3424

Home Inspection..What should you look at ?

Home inspections are imperfect because in most cases the inspector is not able to look behind walls or under the floors which means many potential problems are hidden. But a professional home inspector, can identify plenty of potential trouble spots. These include:

 • Obsolete knob and tube wiring. This is found in homes built prior to the 1950s in most of the original City of Toronto. It is hard to get insurance if your home has knob and tube wiring.

 • A 60-amp electrical service when the norm today is either 100 or 200. Again this will lead to higher insurance premiums.

 • Old galvanized plumbing. It rusts, can leak and plug up, slowing water flow. Old lead pipes are a health risk.

 • Any roof over 20 years old should probably be partially or completely replaced.

 • Old foundations will gradually deteriorate, causing leaks, and are expensive to repair.

 • Windows can be expensive to replace, if in poor condition.

Most of inspector uses thermal imaging technology and, for an additional fee, can identify problems with the structure, moisture leakage or air leakage in a home. They can also better identify when there is insufficient insulation, plumbing leaks or poor construction, which can lead to problems down the road.

So always insist for home inspection when you buy either brand new house or a resale one. 

Best regards,

Ritesh JoshiYour Next Door Realtor

www.riteshtherealtor.com

647-281-3424

Helping new Canadians get a home of their own

Helping new Canadians get a home of their own    New Canadians are making their numbers felt in the housing market, as they get settled and make the transition from renter to owner, with mortgage brokers helping to make that transition as easy as possible.  The most important considerations for new Canadians are credit history and downpayment. If you are new to Canada and do not have any established credit, you can qualify for a mortgage with three months of employment history and by demonstrating credit worthiness to your lender in other ways: Proof of timely rent payments confirmed by your landlord (non-family member) and bank statements Bank statements showing pre-authorized payments for 12 months for regular payments such as utilities, telephone, cable, insurance premiums, along with a bank reference letter A credit report from your country of origin Even though it is not required, it is a good idea to start establishing credit in Canada as soon as you can.  A downpayment of five percent is the minimum, although a larger down payment may be required. If you are a new Canadian, we can streamline the mortgage process for you, from counseling on credit, to obtaining credit references from foreign banks, to confirming foreign income. We'll advise you on the paperwork you need to assemble to apply for a mortgage, and then present your financial history to the lender or lenders that can best meet your needs.

Current Mortgage Rate

 Current Mortgage  Rates

Term	Posted Rate	Best Rate
6 month	5.05%	5.05%
1 year	4.50%	2.59%
2 year	4.05%	2.74%
3 year	4.55%	2.79%
4 year	5.14%	2.99%
5 year	5.49%	3.14%
7 year	6.59%	3.99%
10 year	6.99%	3.89%
Variable Rate	2.80%
Prime Rate	3.00%

Please note that rates are subject to changes, and that some conditions and restrictions may apply. Please contact us today to find out what kind of mortgage we can provide you.

--

Best regards,

 

Ritesh Joshi
Your Next Door Realtor

www.riteshtherealtor.com

647-281-3424

Dry Eyes? Dry Hair? Dry Air!

Dry Eyes? Dry Hair? Dry Air!
Do you find yourself waking up in the morning with a dry throat and a stuffy nose?
Has your family complained about nosebleeds and itchy skin?
Are you getting regular shocks from touching light switches or the family pet?
Chances are, you've got dry air in your house.
Dry air is a common problem at this time of the year. Indoor heating and cold winter air combine to mean there's less moisture in the air, which leads to a host of uncomfortable problems.
So if you've got a dry house, follow these tips:

• Invest in a humidifier, either for individual rooms or, if dryness is a real problem, for your entire house. You'll notice a difference in comfort almost immediately.


• For a low-tech (although somewhat less effective) way to combat dry air, simply leave containers of water on radiators or in front of warm, sunny windows. The evaporating water will add humidity to the air. Simply letting wet towels dry in your bedroom or leaving the bathroom door open while you shower can also help boost humidity.


• Make sure cold, dry winter air isn't getting into your house. Seal any air leaks with weatherstripping, foam or caulk.


• Install a fresh-air intake duct so your furnace is drawing in outdoor, rather than indoor, combustion air.


• Drink lots of water to make sure you stay hydrated on the inside.

Toronto Real Estate Board Market Report Jan 2012

Do You Know How Banks Calculate Mortgage Penalties ?

Recently, one of my clients brother called me and asked me how can he break his current mortgage and have new mortgage at lower rate ?

I asked him to contact his bank and get estimate of penalty as per the standard mortgage terms.

Here are some general calculation usally banks apply in case of mortgage term break before maturity.

 

There are usually 2 methods are used to calculate penalty,

Three months interest penalty or  Interest Rate Differential(IRD), whichever is high 

Let's see if someone has $100000 mortgage remaining at 4 % on a 5 year term mortgage. Assume that current posted rate is 5.30 % and you just paid 36 months installment.

Here I have shown calculations using nominal rate (as opposed to the effective rate) to assist you understand calculation.

Three-Months' Interest Penalty

(Annual Interest Rate x Balance Outstanding) ÷ 4
(0.04 x $100000)÷ 4 = $1000

Interest Rate Differential

Existing Mortgage Rate = 4 %

Current Posted Mortgage rate = 5.3 % 

Interest Rate Difference = 5..3 -4.0 = 1.3 % 

Interest Differential Penalty Estimate:

Nominal Rate x Balance Outstanding x Number of Years Remaining
0.013 x $100000 x 2 = $2600

In above example bank is going to charge $2600 as penalty for breaking mortgage after 36 months(3 years).

Will Canadian lending guidelines be tightened in the coming months?

Will Canadian lending guidelines be tightened in the coming months?

OSFI (Office of the Superintendent of Financial Institutions) is apparently worried that Canadian banks and mortgage lenders may be making some of the same errors that led to the U.S. real estate and mortgage crisis. According to Bloomberg News, OSFI is specifically worried about stated income lending and home equity lines of credit and the potential for certain borrowers to get into debts they cannot repay. 

However, Bloomberg also notes that the Canadian Banking system has been rated the soundest in the world for four straight years with no Canadian lenders needing a government bailout during the recent recession and credit crisis, unlike the U.S. and European banking systems, which remain precarious.

According to Canadian banking industry figures, the percentage of mortgages in arrears in Canada currently sits at .39 of one percent, hardly a red flag for loan quality in Canada. Even still, there may be some additional tightening of Canadian lending guidelines this year as cautious regulators see how badly the credit crisis has damaged the U.S. housing market and their overall economy, and strive to avoid anything like that in Canada. 

Stay tuned.  In the meantime, if you ever have any questions, please get in touch. We are always aware of the current environment and the resulting implications, so we can help you find a mortgage that gives you an edge and meets your current needs and future goals.

Best regards,

 

Ritesh Joshi
Your Next Door Realtor

www.riteshtherealtor.com

647-281-3424

Canadian home sales edge higher in December- REPORTED BY CREA

 

 

 

 

Sales activity rose 1.8 per cent from November to December.

Annual activity totalled 456,749 sales in 2011, up 2.2 per cent from 2010.

The number of newly listed homes increased 3 per cent from November to December.

A simultaneous increase in sales and new listings kept the national resale housing in balanced territory.

The national average home price was up just 0.9 per cent on a year-over-year basis in December, marking the smallest increase since October 2010.

Housing market bubble denied by BMO

The Bank of Montreal poured cold water on the idea Canada's housing market could be headed for a crash, suggesting that prices are only "moderately high across the country."
Read this article on Housing Bubble Denied By Bank Of Montreal
--

Best regards,

Ritesh JoshiYour Next Door Realtor

www.riteshtherealtor.com

647-281-3424

How much your Utilities cost a month ?

Even though I was working as a REALTOR when we bought our house, I was kind of concern about the utilities payments. Similarly I am asked by my each client who is a first time home buyer. I am also asking my client to consider utility cost significant, because lately hydro rates has been increased and as government of Ontario advised consumer to be ready to pay more in future.

Based on data I collected from my clients and my own data shows that if you have a house,



- Between 1500 - 2000 square feet utility will cost you approximately $200 per month.
- Between 2000 - 2500 square feet utility will cost you approximately $250 per month. 
- Between 2500 - 3000 square feet utility will cost you approximately $300 per month.

If you would like to know more which appliance cost you more or less for hydro... Try here

Mortgage Rate - Never this low - 2.99 % 5 year Fix..

Recently Bank Of Montreal offered 2.99 % interest rate on 5 year fixed mortgage.

 

In my view it's a very good deal for those home buyers who can afford 25 years amortiazation.

 

Here are some comparision between traditional 30 years mortgage and 25 years with @ 2.99 %

 

           Traditional Mortgage                                2.99 % Mortgage

 

1)     30 years amortization                                                                  25 years amortization

 

2)     20 % Once a year lump sum payment                                       10 % once a year lump sum payment

 

3)    You can double up a payment                                                     You can't skip or double up a payment.

 

4)    You can refinance or switch your lander                                     You can't refinance or switch your lander

 

 

Best regards,

 

Ritesh Joshi
Your Next Door Realtor

www.riteshtherealtor.com

647-281-3424

Current Mortgage Rate

Mortgage

Arrange a mortgage

Money makes the world go round, and a mortgage gives you the power to buy a home. This isn’t
the most fun step in buying a home, but it’s vital.

Who do you talk to?
There are hundreds of banks, credit unions and other lenders out there who would love your monthly mortgage payments. So talk to everybody. Now is not the time to be money-shy! Talk to your banker and call around to other banks. Ask people you know. REALTORS® are very knowledgeable about Mortgages and have lots of good advice.

Call a mortgage broker
Mortgage brokers are another great resource. They find low rates for a living, and they usually don’t get paid unless you sign a mortgage through them, so they’re highly motivated to get you the best deal.

Your best mortgage might be the seller’s mortgage
Often, you can take over or ‘assume’ the seller’s mortgage. This is a great idea if the seller is locked into a lower interest rate than you can get right now. Your REALTOR® can help you.

Mortgage terminology

• Mortgage term
  Typically from six months to five years, the ‘term’ refers to how long the bank has agreed to lend you the money. At the end of the term, you usually renegotiate a new term.
• Amortization
  The length of time it will take you to pay off the whole mortgage. Often as long as 25 years, if you don’t accelerate your payments. The longer your amortization, the lower your monthly payments, but the more you pay in interest over time.
  Interest rates
  Interest is the cost of borrowing money, and the interest rate tells you exactly how much. Using this mortgage calculator, check the difference between borrowing $100 000 at 6% and at 9% at the same amortization. Surprising, no?
  That interest rate not only affects how much you pay, it also affects how much you can borrow. So remember to keep searching for the best rate!
  
• How big a down payment?
  You want as small a mortgage as possible, which means making the biggest down payment possible. Just remember to set money aside for all the fees associated with buying a home. Not to mention moving, repairs, renovations, new furniture... think ahead.

THE HOME BUYERS’ PLAN – A little sweet relief
If you’re a first-time homebuyer with money in an RRSP, you can withdraw up to $25000 without paying any income tax. If your spouse is also eligible, that’s $50 000. Ask your REALTOR® how to best take advantage of this plan.

Lock into an interest rate; for how long?
It’s a tough question. What if you ‘lock in’ for five years and the rate goes into a period of decline? That could mean you’re stuck paying more than you had to for a long time. But if rates were to steadily climb over the next five years, locking in for five years now would be a great move. Locking in for a short period like six months is a more cautious ‘wait and see” approach. Your REALTOR® will have a lot of good advice.

What you need to apply for a mortgage

Letter of employment confirmation
Ask your employer for a letter that confirms your position, your pay and how many years you’ve been with the company.
List your assets
Your car, stocks, bonds, GICs. Show which assets will be used for your down payment.
List your liabilities
Car payments, student loans, credit card debt. List all the money you owe, and note how you’re paying it off.
Social Insurance Number
And your chequing account number, and your lawyer’s contact information
Information about the house you want to buy
The home is your security on the mortgage, so the lender wants to know all about it.

Don’t forget these extra costs
Face your new financial responsibilities head-on, and you may even dodge some of them. And then won’t you look smart!
Application fee
Some mortgage lenders charge a fee to process your application. Many lenders will agree to waive this fee, so make sure you ask!
Appraisal fee
Your mortgage lender may need to have your new home appraised by a professional, and they often pass the bill on to you. Sometimes your lender will also waive this fee. Again, it doesn’t hurt to ask.
Mortgage broker’s fee
Your mortgage broker may charge a fee that’s payable on your closing date. Ask your broker, to avoid surprises.
Land survey fee
Lenders may require a survey of your property. Lenders will often accept an existing survey. Get your lawyer on the case.
Home inspection fee
A home inspection is so important, we devoted an entire step. Avoid surprises and protect yourself... this is money well spent.
Home Insurance
Mortgage lenders require you carry fire and extended-coverage insurance because your home is the security deposit on the mortgage. Often you can have these payments added to your monthly mortgage payments. Shop around.
Title insurance
Not mandatory, but it protects you from all sorts of fraud and potential errors surrounding the title to your land. It’s normally a few hundred dollars. Ask your lawyer for details.
Legal fees
Your lawyer is vital to the home-buying process. You’ll pay legal fees for their time and “disbursements” which are the costs involved in title searches, drawing up the title deed, and preparing your mortgage.
Adjustments
The previous owner may have paid property tax or utilities in advance, and they want to be credited for those payments. Ask your REALTOR® and lawyer what might come up on the closing date.
Maintenance and utility costs
Just a reminder, you now have more regular monthly payments in the form of property tax, utilities. Maybe some repairs are on the horizon...
Land Transfer Tax
This Ontario tax varies between .5% and 2%. Ask your REALTOR® or lawyer to calculate the payment.
The GST and new homes
Resale homes don’t involve GST, but new homes do. If you intend to live in your new home (instead of renting it out) there is some relief. Homes costing $350 000 or less get a 36% rebate. Homes over $450 000 do not qualify for this rebate