Lenders generally require borrowers to make at least a small down payment. The amount depends on the price of the home and type of mortgage you get. Down payment requirements vary, usually ranging from 3% to 20% of the home purchase price. The size of the down payment you’re able to make affects the amount of money you’ll need to borrow. The amount that you put down affects the loan decision, the size of your monthly mortgage payments, and the amount of cash that you have available for other homebuying costs.

Closing costs are fees that must be paid to complete the transfer of the property from the seller to the buyer. Closing costs also include the fees for the mortgage loan. Typical closing costs may include the origination fee, discount points, appraisal, credit report, title insurance, attorney’s fees, survey, and prepaid items such as tax and insurance escrow payments. Talk to a real estate professional to gain a more detailed understanding of these fees. Prepaid closing costs are any items that must be paid before the loan closing. All these payments must be made no later than the time of settlement. Closing costs can vary, but usually run from 2% to 7% of the mortgage loan amount.


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http://www.kevinloberg.ca

Kevin Loberg
Broker

Royal LePage Terrequity Realty, Brokerage
Independently owned and operated

293 Eglinton Ave East
Toronto, M4P 1L3

Office: (416) 485-2299
Mobile: (416) 495-3859