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Is the same location, the same developers, due to different time will also produce a great difference in price.
Unlike buying a house at home, there are some extra costs that cannot be avoided in Canada.
Today, the editor will take you to crack the whole process of buying a home in Canada.
If the buyer is local, it is recommended to reserve 5% of the house price as a charge other than the down payment.
If the buyer is an overseas buyer, it is recommended to prepare 20% as a charge other than the down payment.
If you do not hold a Canadian passport or are not yet a permanent resident (PR), you need to prepare 15 per cent of the house price as a down payment.
PS: don’t be confused with Vancouver’s overseas buyer tax. In Toronto, overseas buyer’s tax can be refunded.
Land transfer tax.
Depending on the city, a land transfer fee of 1.5%-3% of the house price needs to be prepared.
It is 3% in Toronto and 1.5% outside Toronto (including Wanjin, Lei Wenshan, Oakville, etc.).
If the buyer is buying a house for the first time and holds a Canadian passport, or a permanent resident (PR), the tax can be refunded.
Decoration and maintenance expenses.
Decoration and maintenance costs can not be ignored, because generally speaking, they are not cheap. The buyer is advised to calculate the fee from the real estate agent before buying the house.
Some common decoration and maintenance costs:
Change the boiler (Furnance), $3000.
Change the roof, $6000.
Change the window, $12000.
Decorate the basement, $20000.
Decorate the kitchen, $20000.
Decoration of a single toilet, $10000.
Of course, according to the specific situation, we can control the amount of the budget.
Reservation of local rent.
Land rent = the government values the house x 1%.
The local tax rate varies from city to city, generally between 0.7% and 1%.
Heavy! Point! Come on! Yes!
The base of the above formula is the government valuation, not the transaction price! The government’s valuation is usually half of the house price.
For example, a house sold for $1000000.
The local rent is $1000000 gamble 2 x 1% = $5000 / year.
The money is reserved and can be paid monthly, quarterly, or half a year after the room is handed in.
Monthly mortgage reservation.
It is recommended that you prepare at least six months of mortgage fees in the bank.
It is calculated at $100,000per loan and $450 per month on the mortgage.
To make it easy to calculate, for example, a house sold for $1, 000, 000 and a loan of $600000.
The monthly mortgage fee is $600000 RMB 100000 x $450 = $2700.
So, your reservation is $2700 x 6 = $16200.
The former homeowner paid in advance.
The former homeowner may have paid the land rent for the whole year, or the management fee in advance, or the cost of water, electricity and gas in advance.
Of course, it will also occur that the former landlord forgot to pay the fees, which need to be paid more and less according to the Pro-rate way, and be sorted out by a lawyer on the day of handing over the house.
To facilitate memory, it is recommended to set aside $1000-$2000.
According to each law fee is different, the house price is different, plus the house property right insurance and various miscellaneous fees that the lawyers buy for you, the price will range from $1500 to $3000.
Bank loan fee.
If the buyer does not go to the Tier 1 bank for a loan (RBC,BMO,TD,CIBC, etc.), but to some small bank or credit union loan, there is likely to be a loan called Lender’s Fee (lender fee).
The lender’s fee is about 1% of the loan amount, and the buyer must ask before the loan.
Estimate the room fee.
The bank will ask the house appraiser to estimate the house before the loan to prevent loan cheating.
The estimated cost of the room is about $450, and the bank will issue a bill to the buyer after the house is handed over.