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Legal fees & related expenses. Ask your lawyer to confirm that his or her quote includes all related expenses and disbursements, as well as legal fees. Make sure your lawyer is protecting your interests by walking you through your Offer to Purchase before signing.
HST. Always ask whether or not HST will be charged on your new home before signing the offer. Typically newly built homes/communities include the HST in your purchase price. If your new Highmark Home is your principal residence, HST is included in the listed price.
Title insurance. Your property’s title provides legal proof that you are its owner. Title insurance protects you as a home owner against any challenges that may arise with the ownership of your home such as fraud, survey errors, encroachment issues or existing undisclosed liens.
Insurance for high-ratio mortgages. This is a one time insurance premium on your mortgage if your initial down payment was less than 20% of the purchase price of your home. You can choose to pay this premium prior to closing or add it to the principal amount of your mortgage.
Interest adjustments. You will need to pay interest on the gap between the closing date of the purchase of your home and the first payment date of your mortgage. To avoid paying this interest, ask your bank and lawyer to have your first mortgage payment exactly one payment period after your closing date.
Prepaid property tax and utility adjustments. You will be required to reimburse the seller of the home for any property taxes or utility bills that they have prepaid for in advance (e.g. if the seller prepaid 3 months of property taxes, you will be required to reimburse them for this amount.)
Home insurance. Getting home insurance will provide you with protection for your home and its contents against things life theft, fire and flooding.
Mortgage life insurance. The purpose of this insurance is to provide you and your family with peace of mind in the event of your premature death or illness. Mortgage life insurance will provide a maximum of $750,000 (CIBC) towards paying off all or a portion of your mortgage. (*Please consult your financial institution to confirm the coverage amount they offer.) The insurance costs may vary, but it can be easily added to your regular mortgage payments to protect you and your family’s financial security.