J. Warren Fromm, AMP

• Mortgage Loan Insurance Premium

  If your mortgage is a high-ratio mortgage (less than 20% down payment), your lender will require mortgage loan insurance. This premium is typically added to your mortgage.

• Appraisal Fee

  Your mortgage lender may require that the property be appraised at your expense. An appraisal is an estimate of the value of the home. The cost ranges between $250-$450 and must be paid when you contract for those services.

• Deposit

  A deposit will be included as part of your down payment and must be paid when your offer to purchase is accepted. The deposit amount required may vary depending on the market area and the home value, but it may be as much as 5% of the purchase price.

• Down Payment

  With as little as 5% down payment you can realize your dream of home ownership. At least 20% of the purchase price is usually required for a conventional mortgage to avoid mortgage insurance premiums.

  • OWN RESOURCES

    3 months history of your bank account to verify down payment funds If using RRSPs, a 3 month history will also be required

  • FROM THE SALE OF AN EXISTING PROPERTY

    Recent mortgage statement to confirm the equity

  • BORROWED FUNDS

    A recent account statement showing available funds and payment info

  • GIFTED FUNDS

    Gift letter from related family member Proof of deposit of gifted funds into your bank account

• Status Certificate

  This applies if you are buying a condominium apartment or condo townhouse and the cost is usually paid for by the owner (approx $100.00) but in some cases the buyer must pay. It is a very important item as it states what financial state the condominium corporation is in including how much money is currently being held in the reserve fund.

• Home Inspection Fee

  A home inspection may be a condition of your Offer to Purchase or serve as a peace of mind for you and your family. A home inspection is a report on the condition of the home and generally ranges around $300-$500.00, depending on the complexities of the inspection and the size of the residential property. For example, it may be more costly to inspect a home that has large square footage, one that is expensive or one where contaminants such as termites or urea formaldehyde are suspected.

• Prepaid Property Taxes and/or Utility Bills

  To reimburse the vendor for pre-paid costs such as property taxes, filling the oil tank, etc

• Property Insurance

  The mortgage lender requires property insurance because the home is essentially the lenders security for the mortgage. This insurance covers the cost of replacing the structure of your home and its contents. Property insurance must be in place on closing day.

• Survey or Land Titles Certificate

  The mortgage lender may ask for an up-to-date survey prior to finalizing the mortgage loan. If the seller does not have one or does not agree to provide one, you may have to incur this cost. The cost can range between $500.00 to $1,000.00. In some cases, title insurance is acceptable in lieu of the Survey.

     Water Test

• If the home has a well, you will want to have the quality of the water tested to ensure that the water supply is adequate and the water is potable.   

• Legal Fees and Disbursements

  Must be paid upon closing and cost a minimum of $600 (plus GST/HST) and is typically part of the closing process handled by your lawyer.

• Title Insurance

  Your lender or lawyer/notary may suggest title insurance to cover loss caused by defects of title to the property. Title insurance is sometimes acceptable in lieu of a survey.

• Lenders Fees

  Alternative and private lenders typically charge a fee. Sometimes these fees are added to your mortgage amount, other times the lender may request that these fees are paid up front. For the most part, Argentum's services are free. However, a fee may be incurred to place your mortgage with a private or alternative lender. Under normal circumstances, I am paid a commission directly from the lender at no extra cost to you the client.