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Are there any expenses besides a mortgage and utilities I should consider when buying a home?
Your monthly housing costs will also include taxes and insurance. These rates will vary from house to house. The actual purchase of a home has additional expenses, like lawyer fees, land transfer tax, application fees, property tax adjustment, home inspections, moving costs, mortgage loan insurance premium, appraisal fees, deposit (at least 5%), property insurance, survey or certificate of location, water tests, septic tank inspection and title insurance. Other costs to consider include: appliances, gardening equipment, snow-clearing equipment, window treatments, decorating materials, hand tools, renovations/repairs, service connection fees, hydro fees and condo fees.
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How much do I need for a down payment on a house?
A down payment ranges from 5% to 25% of the purchase price. If a down payment equals 20% or more of the purchase price you will likely qualify for a conventional mortgage loan, which does not require mortgage loan insurance. If the down payment is less than 20% of the purchase price, insurance will be required to protect the lender against payment default. You may qualify for a down payment as low as 5% through the Canada Mortgage and Housing Corporation.
You can contact the Canada Mortgage and Housing Corporation for more information: https://www.cmhc-schl.gc.ca/en/buying.
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Do I have to pay GST when I purchase my home?
GST is only payable on the purchase of a new home. Used residential homes are not subject to GST. If you are buying a new home, you may qualify for a partial GST rebate. Contact Canada Revenue Agency for more details.