Surprise Mortgage Fees You Should Be Aware Of

First-time homebuyers in Guelph Suzanne Hagan 2 May

For many first-time homebuyers, getting a mortgage can be a lot more complicated than they expected. While you may be budgeting for a certain mortgage payment, there may be some hidden fees that you’re not aware of.

Mortgage Insurance

Not everyone needs mortgage insurance, but it’s mandatory for certain homebuyers. If you have a downpayment between 5% and 19.99%, you’re required to buy mortgage default insurance. This insurance protects the mortgage lender, in case you’re unable to continue making your mortgage payments for whatever reason. This is also known as default insurance. Typically, mortgage insurance can cost you between 2.8% to 4% of the cost of your mortgage, but it helps to lower mortgage rates so more Canadians can afford mortgages.

There are a couple of requirements for qualifying for mortgage insurance:

  • Maximum amortization of 25 years
  • Purchase price of $500,000 to $999,999 requires a higher down payment
  • Your purchase price must not be higher than $1,000,000; these houses require a 20% downpayment

Reimbursements

Sometimes when you buy a home, you have to reimburse the current homeowner for any costs they’ve paid for in advance. This can include property taxes, utilities and more, so you’ll have to make sure any amounts that have been pre-paid are reimbursed by you.

Title Insurance

Most mortgage lenders require you to purchase title insurance. This is often a one-time cost that will protect your title to the property and ensure that you’re legally identified as the owner of your property. It covers you for potential losses like fraud, survey errors, encroachment issues, existing liens or anything else that may get in the way of your ownership of the property.

Ontario Land Transfer Tax

Whenever you buy land in Ontario, you’ll have to pay land transfer tax to the provincial government. Land transfer taxes are calculated based on the purchase price of your property. Each province sets its own land transfer tax rates, and there are also special rules when buying real estate in Toronto and Montreal. However, the great news for first-time homebuyers is that you might be eligible for a full or partial refund of the land transfer tax. The government recently raised the credit from $2,000 to $4,000 for first-time homebuyers.

When you’re in the process of finalizing your home purchase, there are a few other fees you may encounter, including appraisal fees and legal fees. Each situation is unique, so talk to your mortgage agent to find out what you can expect to pay.

If you have questions about mortgages or you’re ready to get a mortgage for your new, contact Suzanne Hagan in Guelph! I’d be happy to help you every step of the way.

After-Sale Service with a Private Mortgage Agent

After-Sale Mortgage Service Guelph Suzanne Hagan 1 Apr

There are many benefits of working with a private mortgage agent. From doing all of the legwork for you to offering their services without fees, there are lots of reasons to choose a private mortgage agent over a bank.

The main difference is working one-on-one with a person who truly cares about you and your home buying experience. While most banks see you as just another number, I’m there to make this time in your life as easy as possible!

Payment Plans

Most mortgages are for 25 or 35 years. But that doesn’t mean it has to take you that long to pay your mortgage off! As a private mortgage agent, I can work with you to put you on a payment plan that can help you pay off your mortgage as quickly as possible. By taking the time to sit down and work out a budget that works for you, we can get you on track to pay off your mortgage sooner than you think.

Financial Advice & Refinancing

Whether you want to take advantage of a new, lower interest rate or cash in on the equity you’ve made on your home, refinancing is often a good option for many homeowners. If you want to know more about refinancing or whether or not you should refinance your home, I’m always happy to help with this kind of financial advice.

30-Day Follow-Ups

As a private mortgage agent, I make sure my clients are satisfied with the home buying process every step of the way. I love to give my clients a call 30 days after the home sale, to make sure they’re satisfied and that everything is running smoothly for them. If there’s anything I can do to help make the process easier for them, I’ll do it.

Contact Me – Any Time!

Banking institutions can be notoriously hard to get ahold of – especially when you need it most. But private mortgage agents like me are always there for you! Whether you want to send me a quick email to ask a question, or chat on the phone about your mortgage questions, I’m available by phone or email at all times.

Are you ready to chat with me about your mortgage? Contact me today and let’s get started!