Well, they are 1.5% of the cost of your home deed transfer tax, lawyer fees, municipal tax adjustments, and oil or propane adjustments. I also encourage my clients to save an additional 2.5% on top of their down payment for this. Yes, buying a home is expensive, but for many it is well worth it! People always say if I can afford my rent why can I not I have a mortgage, simply put you can walk away from your rent and move. You cannot do that as easily with a mortgage unless you wanted to sell or foreclose. Your rent also includes things like property tax, water, maintenance and heat in some cases, which all can add up over time. I know this seems like a lot but don’t worry! You will have a team of experts behind you every step of the way! They are as follows
A real estate agent (make sure you choose wisely) is a person you will spend a lot of time talking to so you will want one that understands your needs and wants, one that will be honest and one you can reach easily and also has the same vibe as you! A mortgage professional like myself! Brokers have a different touch than mortgage specialists. We are reached easily and help you every step of the way from the frustrating parts I mentioned above to the day you get your keys! Don’t get me wrong you can get this at your local bank branch, but they have a lot less time for you in some cases due to staffing issues etc. Brokers also have more solutions as we have an array of products for every situation including private lenders and alternative lending whereas the major banks just have one or two.
Down payments are another tough one, you need to prove that this is your money and you have got it legally, not borrowed, not laun- dered. We need to see how you got it. Chances are if you just randomly got 20K in your bank account and no proof how chances are it will not be accepted. You can, however, use a down payment in the form of a monetary gift from a loved one, Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA) or any other registered investment or just from your blood sweat and tears and diligent savings, but please make sure you have a 90-day history of you having this money. The reasoning for this is to show you can manage your money and you did not get it from some cartel aka money laun-
dered, stolen or gained these funds from illegal activity. Therefore, we need proof via bank statements not redacted. The government is also here to help if you need it with a few first-time home buyer incentives like the down payment match program, down payment loan and first-time home buyers tax credit. Also, some lenders will offer a no-down payment product or cash back to help with closing costs. I can help you with all of these if you need the help, just reach out to me. On the topic of closing costs, in addition to your 5% down payment you also need to have money for closing costs, what are they you ask?
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JULY/AUGUST 2022 • SPOTLIGHT ON BUSINESS MAGAZINE
SPOTLIGHT ON BUSINESS MAGAZINE • JULY/AUGUST 2022
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