If you’re looking for a trusted, experienced, and knowledgeable Regina mortgage broker who knows the additional costs you’ll face when obtaining a mortgage, I am here to help. No matter what stage you are in the mortgage process, I can assist you in securing financing to get the home of your dreams. I also understand that all those mortgage rules and regulations surrounding the process can be confusing. My team and I are here to answer all your mortgage questions and take you to home ownership. In my latest tip, I share the information on what the additional costs associated with obtaining a mortgage in Canada can be.

What Are the Additional Costs Associated with Obtaining a Mortgage?

When buying a home, most people focus on the purchase price and the size of their mortgage. However, additional costs are involved in securing a mortgage that is just as important to plan for. I’m here to guide you through the process and ensure you’re well-prepared for all expenses as your trusted mortgage broker. Let’s break down the most common additional costs associated with obtaining a mortgage in Canada.

1. Down Payment

The down payment is the initial lump sum you pay toward the home’s purchase price. In Canada, the minimum down payment is:

• 5% for homes priced up to $500,000.
• 10% for the portion of homes priced between $500,000 and $1,499,999.
• 20% for homes priced at $1,500,000 or more.

In addition, you’ll also need mortgage default insurance if your down payment is less than 20%.

2. Mortgage Default Insurance

For buyers with less than 20% down, mortgage default insurance protects lenders and allows you to access the most competitive interest rates. The cost of this insurance is added to your mortgage and is based on a percentage of your loan amount. Your mortgage payment includes the repayment of the default insurance.

3. Home Appraisal Fee

Lenders often require an appraisal to confirm the property’s market value. Appraisal fees range from $300 to $500, and the buyer typically pays this fee upfront. For mortgage default insured mortgages, the insurer orders and pays for the appraisal.

4. Home Inspection Fee

While not mandatory, a home inspection is highly recommended. It helps uncover potential issues before you commit to the purchase. The cost is usually between $400 and $600, depending on the property size and location. A sewer line inspection may also be wise, and comes at an additional cost.

5. Land Transfer Taxes (or Title Transfer Fees)

Your province or municipality charges land transfer taxes (or similar fees) when you buy a home. This is called the Land Titles Fee in Saskatchewan. You can estimate this fee based on your purchase price, and I can help you calculate it.

6. Mortgage Registration Fees

Provinces may also charge mortgage registration fees based on the value of the mortgage being registered. I can also help you calculate this cost.

7. Legal Fees and Disbursements

A lawyer or notary must handle the legal aspects of your mortgage and property purchase. Legal fees typically range from $1,000 to $2,500, depending on the complexity of the transaction.

8. Title Insurance

Title insurance protects you against potential title-related issues with your property. A lender title insurance policy is always required. Additionally, lawyers usually recommend a home owner title insurance policy as well. Costs can vary and should be confirmed with your lawyer, but are generally reasonable in the $200 and $400 range.

9. Prepaid Costs and Adjustments

Be prepared to reimburse the seller for any prepaid expenses, such as property taxes, utilities, or condo fees. Your lawyer will provide a detailed breakdown.

10. Moving Costs

Moving costs vary widely, from DIY expenses like truck rentals to hiring professional movers. It’s a good idea to budget depending on your needs.

Planning Ahead For Additional Costs With Your Mortgage

Understanding and budgeting for these additional costs can make home-buying smoother and less stressful. As your mortgage broker, I’m here to clarify, answer questions, and ensure you have all the information to make informed decisions.

Don’t hesitate to reach out if you plan to buy a home or have questions about mortgage costs. Let’s work together to make your homeownership journey seamless and stress-free!

Buying a home is one of the most significant financial decisions you’ll make—I’m here to ensure it’s a positive experience.