In cases where the down payment is less than 20% of the purchase price, CMHC Insurance fees will be added to your mortgage and amortized over the length of your mortgage. Whenever possible it is best to put as much as you can into the down payment to lower the long-term borrowing cost of the CMHC fee. If your down payment will be less than the 20% it is a good idea to discuss this with your lender early on, so you have a full understanding of the impact on your purchasing ability.
The cost of a home inspection ranges from $300- $500+ depending on size. In the overall picture, this cost is minimal and can save you big bucks both with the transaction and years down the road. If a deficiency is found you may be able to have the seller contribute to / fix the issue before possession as part of the purchase agreement. You will also gain valuable insight into the overall maintenance of the property and general things that will need upkeep and attention in years to come. By having this knowledge upfront, you will be able to better plan for those items and ensure your home maintains its value through upkeep.
Many buyers are skeptical of property inspections – and I get it – they do not answer all our concerns. It is important to make sure you hire a reputable, licensed home inspector – and don’t be afraid to ask for references or a referral from someone you trust. A typical inspector can provide you with information on the condition of the foundation, heating and cooling systems, electrical service, roof, plumbing, and other significant structural items.
In the Calgary Real Estate market today, most lenders require an independent 3rd party appraisal to confirm that the property you want to purchase is valued at the sale price you have offered. The appraiser will view the house and submit a report to the lender regarding his opinion of the sale price. The goal is to make sure the lender is not providing more money than they would be able to recover if you were unable to pay your mortgage and they had to sell your home as a result.
With many lenders, this fee is covered however some require you to pay the amount out-of-pocket. An appraiser can charge between $150-$300
Adjustment Costs
Depending on what time of the year your purchase closes you may have to reimburse the seller for items they have already prepaid such as property taxes or utility bills such as gas, hydro and water. The lawyer will outline these items for you in the Statement of Adjustments.
A Calgary real estate lawyer will charge approximately $400 to $100. The lawyer is responsible for, among other things, reviewing the purchase agreement, drafting required closing documents, the transfer of funds, conducting a title search, registering the property, draw up a Statement of Adjustments, and facilitate the financial transactions on closing day.
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