Frequently Asked Questions

When is the downpayment paid?

The downpayment is paid on closing.

What is a closing date?

The closing date is the day you pay for the home and take possession. It is also referred to as the completion date.

What are closing costs?

Closing costs are one time costs that must be paid before the closing date. They include land transfer tax, adjustments, legal, registrations, and disbursements.

Who do I pay the closing costs to?

All of your closing issues are handled by your lawyer. They will pay all of the costs associated with closing your deal and then bill you. You pay the closing costs to your lawyer.

When do I pay the closing costs?

Your lawyer will schedule a meeting with you a day or two before closing to sign all related documents and discuss the closing procedure. They will inform you of how much your closing costs are and ask you to bring the balance with you plus your remaining down payment.

What is the difference between purchase price, down payment, and mortgage amount borrowed?

The purchase price is the agreed upon value to be paid by the buyer to the seller. The down payment is your total available savings being put towards the purchase of the home. It is the difference between the purchase price and the amount of money being borrowed. If your down payment is less than 25% of the purchase price, the CMHC insurance fee will be included in your mortgage amount borrowed.

How is Land Transfer Tax calculated?

The calculation of the Land Transfer Tax is a gradual percentage calculation. To Determine your land transfer tax value follow the table below. The Land Transfer tax formula: = purchase price X % less $ value.

Purchase Price % Less
Less than $250,000 1.0% $250
Greater than $250,000 1.5% $1,525
Greater than $400,000 2.0% $3,525

Do I need to pay a Mortgage Loan Insurance Premium?

If you are borrowing more than 75% of the value of the property, the mortgage must be insured. The insurance protects the lender against borrower default. This enables you to purchase a home with as little as a 5% down payment. The calculation of the insurance premium is determined by the amount of down payment you have and a gradual percentage scale.