CLOSING COSTS (applicable to purchases only)

• In addition to the down payment, lenders need to see an additional sum of funds available to address the closing costs, i.e., notary fees, welcome tax, moving expenses and any other cost related to a real estate purchase.
• The closing costs equate to 1.5% of the purchase price.

• The insurers, CMHC, Sagen and Canada Guaranty, require that 1.5% of the purchase price is aside to address the closing costs.
  • If the funds are not available
    • They can be gifted
    • They can be borrowed, however, added to your existing debts

• When the down payment is more than 20%, it's up to the lender's discretion to override this criterion.

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