If you don’t have any experience getting a mortgage in Transcona from a lender, then there are a few things in the process that may surprise you. Closing costs are one of the most frequent sources of heartache for people who are buying their first home because they often underestimate how much extra they’ll have to pay.
Being prepared for your closing costs will ensure that you aren’t taken aback by any of the charges, and it can help you transition into your new home much more smoothly. As you may guess from the name, closing costs aren’t a single charge, but instead a bunch of different things to pay.
Keep in mind that closing costs in Winnipeg can vary based on the terms of the mortgage and a few other factors, so this guide won’t be pinpoint accurate. Instead, we’re going to try and give you an idea of what you’ll have to pay, and we’ll also describe the costs and what you’re paying for so that you know what to expect.
If you want a more personalized assessment of the closing costs that you will have to pay, feel free to contact us, and we can help simplify the process of getting your mortgage. Whether you just want us to assess the closing costs, or if you would like us to handle everything else too, we’re experienced and willing.
What Is Each Of The Costs For?
One of the most significant expenses you’ll have to deal with when paying closing costs is the down payment on your home, and most people will save up for it in advance. Up next, for Winnipeg residents you’ll also have to pay a mortgage default insurance premium, though this can be avoided with a larger down payment.
If you want to be sure that the property won’t cause you any problems after purchase, you’ll also have to pay title insurance. After that, you’ll have to pay the land transfer tax, which is based on the value of your home, maxing out at 2% of the home’s value if it is over 200 000 CAD.
You’ll also need to pay around 100 dollars to the land registration office to ensure that your home title is registered. Don’t forget about optional costs like what you’ll have to pay to the movers, or what you can expect to be charged by a home inspector to take a look at the house before you buy it.
The application fee for your mortgage is another potential cost, though this will depend on whether or not your lender charges one in the first place. You may even have to pay for an appraisal of the property so that you can get an idea of how much it is actually worth.
How Much Can You Expect to Pay?
First, we’ll go over the costs that we can’t anticipate because they are dependent on the value of your home. The down payment is the main thing that you’ll have to figure out on your own, but since it will be outlined in your mortgage agreement, then you won’t have any trouble finding it.
Mortgage default insurance also depends on the value of the home, so that can also vary widely. Finally, the mortgage application fee will depend on the lender that you’re working with, so we can’t anticipate that either.
While the total of the predictable expenses comes out to a maximum of around 2000 CAD, you typically won’t have to pay every possible closing cost. Along with that, the unpredictable ones generally are the most expensive, so you’ll likely have to spend quite a bit more than that to close the deal.
If you want a close analysis of your potential closing costs, give us a call or email us and we’ll use our expertise to ensure that the costs don’t sneak up on you at the last minute.