Buyers

How much can I afford?

Before going house hunting, it is important to get PRE-APPROVED for a mortgage. The link below will take you to a mortgage calculator so you can get a rough idea of what you might be able to afford. It is important to speak to a mortgage broker so they can arrange a pre-approval for you.

Making an offer

When you make an offer on a home, you will be required to make a deposit which shows the seller you are serious about buying their home and have your finances together. Typically in the GTA, a deposit is roughly 5% of the purchase price. If the buyer walks away from the deal their deposit is generally forfeit. The deposit is held in the listing brokerage or lawyers trust account until the deal is firm.

Closing Costs

Closings costs typically run 3-4% of the purchase price of your home. These costs can not be financed in your mortgage so you will need to have extra savings set aside for these additional costs which include:

• legal fees
• land survey fee
• CMHC insurance if downpayment is under 20 percent
• appraisal fee
• property tax
• inspection fees
• property insurance
• moving costs

The link below will give further details of these costs.

Land Transfer Tax

When you acquire land or a beneficial interest in land, you pay land transfer tax to the province when the transaction closes. If your property is in Toronto you must also pay the Toronto Land Transfer Tax. In addition, for certain transfers of land within the Greater Golden Horseshoe Region, a 15% Non‑Resident Speculation Tax (NRST) may apply. If you are a first‑time homebuyer, you may be eligible for a refund of all or part of the land transfer tax.

Learn more about land transfer tax on the Government of Ontario website.