How Much Mortgage Can I Afford?

Deposit:

This is part of your down payment  paid when you make an offer. Whatever the amount, make sure you're comfortable with it and able to provide it quickly.

Down Payment:

Plan for an amount of at least 20% of the purchase price. If that doesn't fit your finances, a high-ratio mortgage  may be available with a down payment of at least 5%.

Appraisal Fee:

In order to get approved for a mortgage loan, you may be required to have the property valued. The process of determining the value of property is usually for lending purposes. This value may or may not be the same as the purchase price of the home. There may be a fee associated with an appraisal.

Home Inspection:

This is a report on the condition of the home, and receiving a satisfactory one is often an important condition of the offer to purchase, as it can reveal any defects or requirements for major repairs.

Legal Fees:

These are paid to your lawyer or notary for the legal transactions involved in the purchase, such as a review of terms of the offer, property title search, completion of mortgage documents, and registration of relevant closing documents.

Land Transfer Tax:

This is a provincial tax that some provinces may charge to be paid on closing. The cost is a percentage of the property's purchase price and varies by province.

Property Taxes and Utility Adjustment:

Some expenses that the seller may have prepaid on the property may need to be reimbursed by you before the sale is finalized. These may include municipal property tax, utilities such as heating, hydro and water, or condo maintenance fees if applicable.

GST/HST where applicable:

This is sometimes included in the sale price and varies by province. Generally, these taxes are charged on new homes, not on resale properties. It's good to ask before making an offer.

Interest Adjustment Payment:

This amount covers any interest accrued between the closing date of the purchase to the start of the term which is the first of the month following if you are at TD.

Mortgage Default Insurance  5% Down Payment Option:

If you are unable to manage a large down payment, you can still enjoy home ownership with an insured mortgage.

Home Insurance:

This is required to protect your home and its contents, and for the security of the mortgage loan. It must be in place on closing day.