Buying one of the Homes for Sale in Durham

When purchasing one of the homes for sale in Durham there are certain things you need to take in to consideration.

First time home buyers are especially susceptible to falling subject to disappointment and shock when dealing with the ins and outs of a home purchase.

Mortgages:

Unless you have been given a huge cash inheritance the likelihood you are going to need financial assistance is pretty high. In Ontario, there are a number of different options for your mortgage to help suit your individual budgetary needs. Here are a few key terms you will need to understand before signing on the dotted line.

Loan to Value – Loan to Value or LTV, is the amount of borrowed money as a percentage of the purchase price. For example, if you bought a home at $200,000.00 and your LTV is 85%, the mortgage is then $170,000.00.

Downpayment – There are very few lenders that will offer 100% LTV. This means there will be a portion of funds that you as the homeowner will have to come up with in advance. This is typically 5-15% of the total home purchase price.

Amortization Period – The amortization is the number of years it will take to pay off your mortgage and the incurred interest. In Ontario, mortgages can no longer go beyond 35 years.

Fees:

Agents – Real estate and mortgage agents will be paid out of your borrowed funds when buying one of the homes for sale in Durham. It is typically 1-3%.

Land Transfer Taxes – When land changes hands in Ontario a tax of 0.5-2% of the purchase price will be charged.

Lawyer Fees – It is essential to have a lawyer take you through the process of buying one of the homes for sale in Durham to ensure the details are all taken care of. Your financial lender will also employ a lawyer. This will result in added fees. Be sure to ask your agents before getting started.

Don’t be surprised when purchasing one of the homes for sale in Durham. Talk out all of the fees and mortgage options with your lawyer, real estate and mortgage agent before signing to make sure you are covered.