by Admin Staff
on Tuesday, July 28th, 2020 at 3:56pm.
Listed below is a basic overview of some of the costs that may or may not come up in your particular situation when you purchase a home here in Saskatchewan. These costs are approximations only and are subject to change. They serve to help you plan as a homeowner or potential homeowner. When you do decide to buy a home, you'll discuss your personal situation with your Century 21 Realtor and go over the exact costs.
A down payment is the lump sum of money that your lender expects you to put into your purchase at the start. Typically, between 5% and 20% of the purchase price. Traditionally, the rule was always 20%. This amount has changed over the years, since homes and the cost of living have drastically gone up in price. A majority of folks now put down 10% or less, especially those who are first time home buyers. This means that the length of the mortgage will be longer, and the loan cost will be higher. However, over the long term, it's the more feasible financial option. For example, on a $250,000 home, a 20% down payment will be approximately $50,000. Previous home owners may not have an issue with this, but first time home buyers would need to have this saved up. A 6% down payment on a $250,000 home is $15,000.
Your lender will likely want an appraisal of the subject property to ensure you have agreed to a fair price. This cost is approximately between $200 and $300, dependent on the size of the property.
In the past, lenders have charged this fee to process your request for financing. Most have stopped, but some lenders still charge. This fee is approximately between $75 and $150.
CMHC stands for the Canada Mortgage and Housing Corporation. If you plan on taking a high ratio mortgage (where your down payment is less than 20%) you will need to pay this fee of $235. Additionally, you will be charged insurance premiums from 0.5% - 3.75% of the mortgage amount. Mortgage default insurance doesn't come for free, so this is why you pay that fee.
Lenders require you to purchase insurance to protect yourself from loss due to unforseen circumstances, as well as your home's contents. This is roughly $400.
Budget approximately $200 for the cost of connecting your basic utilities to the home, such as power, water, gas, communications, etc.
The seller may have already paid the local property taxes beyond the date of possession. In this case, the buyer will reimburse the seller on a pro-rated basis. The buyer may also be required to pay the seller an interest adjustment on any portion of the purchase price not received by the seller at possession.
You must register your title with Saskatchewan Land Titles. The cost for this varies, depending on home value. Roughly, you'll need $2 per thousand of the price, plus $20. Using the $250,000 example from before, just cross multiply using the previous sentence to figure out the value. So $1000 times your unknown value (let's call it x) will equal $2 times your price of $250,000 (which is $500,000). $500,000 divided by $1000 will give you your x value, $500. Then, $20 added on, so $520. Remember, this is a basic guide to go by!
Lawyer fees vary with amount of work. They normally charge $500-$700 to register a title.
Lenders usually require one of these reports to verify that all buildings are situated on the property. Request that the seller provide you with one. If the seller is unable to or unwilling, this may cost you $400 or $500.
You'll need to call the local movers for quotes here. There is too much of variance in price that we cannot give a rough cost. Of if you're getting family and friends to help you move, you may have to pay in cold beer! In this instance, a couple of cases is sufficient. ;)
The lawyer that handles your purchase will want to ensure that you receive a clear title to the home. They will charge any expense that is incurred on your behalf to close the transaction. Typically, this charge is in the area of $90-$150.