Look for Marc LaCouvée's monthly article in every edition of The Beacon Magazine (www.eyesonbc.com)!
BUYING A HOME IN BC: CLOSING COSTS GO BEYOND THE PURCHASE PRICE
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Your bank may also require a survey certificate for the property you are buying. The purpose of the survey is to formally define the boundaries of the property and ensure that all buildings are within those boundaries. The seller will often already have a survey but if a new survey is required it will likely cost approximately $300.
Mortgage Application Fee:
In certain cases, especially if you are applying for a high-ratio mortgage, there may be a fee for filing the mortgage application. A high-ratio mortgage applies when your down payment is less than 20% of the purchase price of the home.
Mortgage Default Insurance:
Mortgage default insurance is required on most mortgage loans greater than 75% of the appraised home value. Its purpose is to ensure that the lender will not lose any money if you cannot make your mortgage payments and the value of your home is not sufficient to repay your mortgage debt. The premium is paid to the lender.
Life & Disability Mortgage Insurance:
Life & Disability mortgage insurance is optional. Mortgage life insurance allows your family to live mortgage free should anything happen to you or your spouse. Disability coverage varies but typically would involve your monthly mortgage payments being paid for a certain period of time.
Fire & Liability Insurance:
Fire & Liability insurance will be required by your lender to ensure that in the event of fire, the lender will receive the balance owing on the mortgage loan before you receive any insurance proceeds.
You should engage a lawyer or notary public to act on your behalf during the completion of your home purchase. Your lawyer will advise you through the purchase process, record the transfer of home ownership in the Land Title and Survey Authority Office, prepare and register your mortgage documents and so on.
If you have questions about how much you can afford for a new home, please don’t hesitate to contact me to discuss. You can reach me easily by phone, 250-752-2466 or email, firstname.lastname@example.org. Happy House Hunting!
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