A: Legal fees vary. It's best to contact a couple of lawyers to fully understand what the costs are. The basic fees for a buyer range from $800 to $1,000. Then you’re looking at roughly another $300 to $400 to search title to the property, $350 for title insurance and $150 to register one mortgage etc. There would also be governmental land transfer tax. With that, on a $300,000 property, land transfer tax would be $2,975, while a $700,000 property would be $10,475.
Q: How important is parking for condo?
A: You may not require parking, but it's very important when you sell your unit. You might think you’ll never sell, but if you’re under 40, I can pretty well guarantee you will be selling. And having a parking spot is very important to your sale.
Q: How long does financing take?
A: Typically, your lender should have an answer for you in about three days.
Q: What is a status certificate and how do I get one?
A: A status certificate is requested by your realtor when you purchase a condominium. Your lender will not lend you your mortgage funds unless your lawyer has reviewed the status certificate. The status certificate outlines all the expenses/reserve fund costs for the condominium, as well as any special assessments there might be. It will also contain the rules and regulations for the condominium. This is very important.
Q: How much of a downpayment do I need to purchase?
A: You can purchase with 10 per cent down, however that will require Canada Mortgage and Housing Insurance on your purchase. Mortgage insurance is very expensive and could run you anywhere from $10,000 to $30,000. If you can put 20 per cent down, you will not require mortgage insurance.
Q: If I get a roommate to help pay for my condo can that money go towards my mortgage?
A: The short answer is yes. If you have a lease with your roommate for one year, your mortgage broker can use that amount as additional income to count for your mortgage.