Costs

Appraisal fees are usually in the range of $350 to $500, depending on location. Residential appraisals take 2-3 days while commercial appraisals may be $3000-$5000 and take a month to complete. Both are paid by you. In most cases, the insurer pays the appraisal for an insured mortgage.
You get to choose your lawyer or notary public and control the cost. It averages at $800-$1200 depending on the solicitor. You pay for it, and are most encouraged to look for a good deal. In some cases the lender limits you to use a solicitor in their list. They also have the right to veto your choice.
Inspection is not mandatory, but it’s highly recommended to include the inspection as one of your contract’s subjects (terms). An inspection will provide you with an extensive report on your property’s condition and major deficiencies if any exist. This info will be a significant factor in your decision to finalize your commitment and purchase the property. The average cost for a residential house is $500-$1000.
PTT (Property Transfer Tax) is paid by you, upon purchase, as part of your closing costs. It’s a big expense, calculated as a percentage of purchase prices. You may pay 10K+ for a house of 600K. Call us to hear about the exemption for first time buyers, for buyers who purchase a new developed property, as well as the special tax for foreign buyers in BC and Greater Toronto
Home insurance is a mandatory charge. In order to conclude the mortgage process, you’ll need to provide the lender and/or lawyer with existing home insurance (in case of refinance) or a new one (for a purchase). The cost varies with the location, age, size and type of the property as well as whether part of it is rented, serves as an office, etc.
In 95% of the mortgages we do, there are no additional fees paid to us or to the lender. Yet the question of fees is important to ask. You may find these fees attached to special mortgage arrangements like second mortgages, B-lending or private lender mortgages. In any case where fees are applicable, you’ll be notified upfront, will sign a consent form detailing the maximum amount, and we’ll calculate the exact pricing of the loan for you.
Lenders charge you with a discharge fee (several hundred dollars) when you choose to switch to another bank or any financial institution. In some cases the new lender will be willing to take the fee upon them. Although this situation is rare, it never hurts to ask.
Most lenders today require title insurance as a part of the legal process. The cost ranges between $150-$300 or more. This insurance insures the lender’s investment in case the boundaries of the property are incorrect. There is an option to pay an additional charge and have this insurance protect you as well.