TWT recently funded a $882,440 High Ratio Insured Mortgage for our First Time Home Buyers.
The purchase price was $915,000 and our clients wanted the lowest down payment.
For CMHC-insured mortgage loans, you must have the following:
• 5% down payment for the purchase price portion up to and including $500,000
• 10% down payment for the purchase price portion between $500,000 and $1,000,000
Therefore in this circumstance, the minimum down payment required is $66,500 which is 7.27% down payment.
The Default (CMHC) insurance premium was $33,940 which is added to the mortgage and the total mortgage is therefore $882,400.
In terms of helping our clients prepare for closing and closing costs, the following numbers were applicable:
Land Transfer Tax (outside Toronto) $14,775
First Time Home Buyer Rebate $4,000
Net $10,775
*If this was a Toronto resident the Land Transfer Tax would have been $21,075
Other costs to consider on closing:
PST on Mortgage insurance
Appraisal cost which our brokerage covers
Legal Fees.
TWT negotiated best in market interest rate, filtering through many lenders to ensure our clients obtained the best terms!
If you would like support calculating mortgage insurance, closing costs, access to interest rates and direct communication to our office, you can download our free mortgage app/calculator: https://www.dlcapp.ca/app/scott-westlake