23 Sep

Closing Cost whe buying a house


Posted by: Devon Jones

For a first time home buyer understanding what’s involved in Closing Cost when you are buying a house is very important and this can add up to thousands of dollars. To help you in preparing and not get any surprises I am going to outline some of the most common closing cost.

Different properties have different cost associated with it and you can give me a call if you have question about your specific purchase and I would be very happy to provide you with more information.

First off there is the Land Transfer Tax for which there is some exemption for first time home buyers but is usually 1% of the purchase price (2%) in Toronto.

You will also pay the lawyer closing your mortgage a Legal Fee for his or her services and this can range from about $600.00 to about $1,500.00 depending on the file.

The lawyer pays for some services (Disbursements), like title searches, title insurance ,name searches, registrations etc. which is passed on to you in the total Legal Cost.

If your property is closing on any other date but the first of the month and you would like to make your mortgage payment on the first of every month, you will pay what’s called Interest Adjustments. This is the interest accrued from the closing date let’s say August 15th, (the day the bank advance you the money and the first of the following month (Sept. 1st) and is a onetime charge. This is collected from the mortgage amount so you won’t have to make a payment on Sept 1st. Your regular payment will commence on Oct 1st. The later in the month you close the less Interest Adjustment you will pay.

Most municipal taxes are paid July 1st, for the calendar year. If you purchase a property before July 1st, the seller will be paying you for the days they owned the home after January 1st, and you will pay the city. If you purchase a property after July 1st, the seller will have already paid the city and you will pay the seller for the days you own the property up to December 31st. This is called Property Tax Adjustments.

You might have to pay for an Appraisal depending on the value or the amount you are putting down as a down payment.

You should always have a home inspector conduct a Property Inspection when buying a house as you will need to know if there are any defects that you will have to pay to repair once you own the property.

You will also need to get a Home Insurance as a condition of the mortgage which you will have to supply to the solicitor closing the mortgage before the bank will advance the funds.

As you can see buying a home has many hidden costs that are not associated with the actual home or with the interest that is on the home. It is important to be aware of at the various closing costs so you can be prepared and not having surprises on closing day. Not being able to close on your schedule closing day can cost you dollars in penalties.


2 Sep

Getting a Home Equity Line of Credit


Posted by: Devon Jones

You’ve Worked Hard to Build Equity in Your Home. You are proud of your home ownership accomplishment but you gave some debts that you have accumulated. Maybe you want to use your Equity to work hard for you.

If you own your home, the equity you have accumulated may be one of the most cost-effective ways to lower your borrowing costs. In most cases, Home Equity line of Credits (HELOC) can offer you a lower interest rate compared to other types of loans while providing you with access to credit to pay out high interest loans, unexpected expenses, and home improvement projects or consolidate debts, college tuition and many more debt obligations.

If you are thinking about refinancing your mortgage a good option would be a HELOC. Once approved you have access to the funds at any time without having to re-qualify.

Interest rate using your home as security may result in lower interest rates compared to other unsecured credit products. The rate is usually tied to the prime rate.

You can withdraw as much as you need up to your credit limit, and whatever you bay down pay down will increase your available limit.

With a Home Equity line of Credit, once you qualify you will have access to the funds.

Contact me if you would like more information at www.devonjones.ca or 1-855-227-5663


Devon Jones

Mortgage Agent M08003225

Dominion Lending Centres Altra Inc.

335 Bayly Street West, Ajax, ON L1S M2