Barrie Home Buyer's Cost Guidelines
Generally a buyer wants to put as large a down payment as possible. When the down payment is a small amount (must be a minimum of 5%) there is an insurance premium that is applied and is blended into the mortgage payments. Your mortgage specialist will have the specifics.
Property Taxes - see MLS listing for a guideline
Closing Costs generally include
title insurance and/or a survey
photocopying, couriers, various certificates
adjustments (eg any utility costs or property taxes which the seller has paid beyond the close date is calculated and adjusted so the buyer covers this amount)
Land Transfer Tax (LTT)
(NB - First time home buyers receive a refund up to $4,000)
a $300,000 home purchase = $3,250 LTT
a $400,000 home purchase = $4,750 LTT
Generally range from $500-$600 and it is money well spent
Utilities (eg heating, hydro, water) - service set-up charges
Moving Costs - depends on whether you hire a moving company or do it yourself as well as the distance of the move.
Other Monthy Payments/Expenses which might apply
Other insurance (eg health/dental or bank may require you insure your mortgage. Compare this cost to taking out a life insurance policy instead)
- banks or any mortgage lender will do a credit check to verify what amount of mortgage you can afford. Typical loan qualification criteria require that borrowers spend no more that 32% of their gross income (Gross Debt Service Ratio or GDSR) on shelter financial obligations including mortgage payments, taxes, heat and half of the condo fees (if applicable).
- In addition, borrowers should spend no more than an additional 8-10% of their gross income (Total Debt Service Ratio or TDSR = 40% max) on all other financial obligations including personal loans, car loans, credit cards and other debts.
Who pays the commission?
Currently, in the majority of cases, it is still the seller who pays the brokerages/agents involved in the transaction.