Edwin Lam 林玉德
Real Estate Associate Broker 地產代理
Buying and Selling Real Estate in Metro Vancouver, BC, Canada,
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(9) CMHC Mortgage Loan Insurance Cost
How Much Does CMHC Mortgage Loan Insurance Cost?
To obtain CMHC Mortgage Loan Insurance, lenders pay an insurance premium. Typically, your lender will pass these costs on to you. Your lender will give you the exact price when you apply for a mortgage.
The CMHC Mortgage Loan Insurance premium is calculated as a percentage of the loan and is based on the size of your down payment. The higher the percentage of the total house price/value that you borrow, the higher percentage you will pay in insurance premiums.
Remember: without mortgage insurance you may avoid the insurance premium but you’ll typically pay much higher interest rates and additional administrative fees. At the end of the day, for the vast majority of borrowers, the cost of CMHC Mortgage Loan Insurance is more than fully offset by the savings achieved.
A 10% premium refund may be available when CMHC Mortgage Loan Insurance is used to finance an Energy-Efficient Home.
For portability and refinance, the premium is the lesser of Premium on Increase to Loan Amount or the Premium on Total Loan Amount. In the case of portability, a premium credit may be available under certain conditions.
* Premiums shown with an “*” do not apply for refinance. For portability the maximum LTV ratio is 90%, but CMHC may consider higher LTV ratios when the new ratio is equal to or less than the original LTV. For portability, the premium is higher for non-traditional down payments on Increase to Loan Amount.
** Down Payment Requirements — Traditional sources of down payment include: Applicant’s savings, RRSP withdrawal, funds borrowed against proven assets, sweat equity (<50% of min. required equity), land unencumbered, proceeds from sale of another property, non-repayable gift from immediate relative, equity grant (non-repayable grant from federal, provincial or municipal agency). Non-traditional sources of down payment include: Any source that is arm’s length to and not tied to the purchase or sale of the property, such as borrowed funds, gifts and 100% sweat equity.
Premiums in Manitoba, Ontario and Quebec are subject to provincial sales tax. The provincial sales tax cannot be added to the loan amount.
Amortization Options — Portability and Refinance Transactions (when paying the Premium on Increase to Loan Amount)
Maintain the remaining amortization period of the existing CMHC-insured loan.
Where there is an increase to the loan amount, the amortization period of the existing CMHC-insured loan and the loan increase may be blended using a weighted average provided the resulting amortization does not exceed the remaining economic life of the property. For refinance transactions the resulting amortization may not exceed 25 years. A 0.60% blended amortization surcharge to the loan increase applies to the Premium on Increase to Loan Amount.
Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers this cost otherwise you are responsible for covering this cost. The fee ranges from $150 to $350.
Survey fee - Your lender may require an up-to-date survey of the property. If the seller did not provide you with one, you will have to pay to have one done. The fee ranges from $150 to $350.
Estoppel Certificate Fee (not applicable in Quebec)
This applies if you are buying a condominium or strata unit and could cost up to $100. Home Inspection fee - Most Realtors recommend that you get a home inspection by a certified home inspector. It will cost you from $350 to $500 for a smaller house. Large houses may cost more. Legal fees - Lawyers/Notaries fees for closing the sale range according to the complexity of the deal but they will probably be $500 or more.
Disbursements to Land Titles Office
These fees are approximately $300. Your lawyer/notary will arrange this payment.
Home Owner Grant Home owners
The Feb 2008 budget provides, over four years, more than $1 billion to encourage energy efficiency, including:
*$60 million for energy audits and conservation retrofit incentives to help home owners decrease home energy costs;
*a Provincial Sales Tax (PST) exemption for retrofits and energy-efficient appliances; and
*tax reductions on hybrid, alternative and/or conventional fuel vehicles.
As announced January 11, 2008, the threshold for the phase-out of the Home Owner Grant increased to $1,050,000 of assessed value from $950,000, ensuring that more than 95 per cent of home owners remain eligible for the full grant.
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