July 11, 20263 min read
Homebuyers often hear a rule of thumb, but prime mortgage underwriting is more detailed than that. The purchase price and down payment are only part of the cash needed to close a home purchase in Ontario.
Where borrowers get tripped up
Here is what matters most:
- Common costs can include legal fees and disbursements, title insurance, land transfer tax and adjustments for prepaid property taxes or utilities.
- An appraisal or home inspection may be needed depending on the property, lender and your purchase conditions.
- Ontario charges provincial sales tax on mortgage default insurance premiums when applicable; that tax is not added to the mortgage principal.
- Some first-time buyers may qualify for land-transfer-tax rebates or other programs, but eligibility should be confirmed before relying on them.
Build a closing-cost estimate into your pre-approval so the money is available when your lawyer needs it.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
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