Up-front Costs — Ted and Shayla

Ted and Shayla have found a newly built home. The asking price is $200,000 including the GST.

After adding together wedding gifts, a small inheritance and other savings Ted and Shayla found that they have $28,900.

Ted and Shayla went to a lender and got a mortgage pre-approval of $196,000. 

They decided on a down payment of $20,000. Because the down payment is less than 20% of the price, they need to get mortgage loan insurance.

At the bank, they are advised that the premium for their mortgage loan insurance is 2.4% of the total loan amount — they would have to pay $4,320 for their mortgage loan insurance. They were happy to learn that the mortgage loan premium could be added to their monthly mortgage.

Ted and Shayla’s Up-front Expenses

When Ted and Shayla made an offer on the bungalow, they provided a $1,000 deposit. Since their down payment would be $20,000, they need to pay a further $19,000 at time of closing.

An appraisal was not requested by the Lender. They hired a professional Home Inspector for $500 to visually inspect the home to identify potential problems.

They were required to obtain a land survey which cost them $1,000.

Because their province requires land registration, they had to pay $3,000.

Ted and Shayla’s realtor advised that she had heard about water problems in the area so they decided to get a water test done for $175.

In order to get a mortgage they had to pay $50 for their first month of property insurance.

Property taxes will be added to their mortgage payments. But Ted and Shayla had to pay the taxes that were left for the first year which was $1,250.

Their lawyer’s fees were $950.

They didn’t need to buy appliances, or snow removal and gardening equipment.

Their moving costs were $250.

For their cable, internet and telephone “package” they paid a small hook-up fee of $75.

Downpayment $20,000
Closing Costs $7,250
Total Up-Front Expenses $27,250