How Much Money Do I Need To Buy A Condo?

A lot of buyers ask: “how much money do I need to buy a condo”, but in reality, they have no idea how much money is required, especially when their parents are forking over the cash. So what I usually like to do is sit down with the buyer at a table with nothing on it except a pen, paper and a calculator – old school – and go through all the numbers, writing down each amount and then adding it up to show them the final amount. If they haven’t bolted for the door, we are ready to move forward.

Here are what the numbers usually look like; remember if you have less than 20% down , you must pay an additional payment every month for a mandatory mortgage loan insurance which protects the lender (i.e. the banks) against mortgage defaults. (So we’ll never end up like the U.S.).

Then you have your land transfer taxes, that’s right taxes, plural. There are 2 of them, one for the province and the other for Toronto. They are about 1% each of the purchase price.

Are you still with me?

Okay, then you have your lawyer’s fees which are usually $1,000 to $1,500, and they look after all the paperwork and transfer of funds along with transfer of title and all that good stuff. It’s all done electronically so they actually don’t have to leave their desk to do any of this.

This is all for a resale condo – pre-construction or brand new is a tad more involved (I’ll tell you another time).

Other than that, you have moving costs, like the truck, movers, boxes, etc… But wait there is something that you get at no cost… A Realtor, we get paid from the Seller, so there is no excuse not to use and abuse us… It’s our job, and believe it or not, WE LOVE IT!!!!!

See you soon.

JOIN US FOR THE UPCOMING WORKSHOP “WHAT YOU DON’T KNOW ABOUT HOME BUYING” ON JANUARY 24, 2013, and to find out more about the Regent Park Life Team.