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Title Insurance - Why Not?
Lenders require it and you may benefit.
More lenders are requiring title insurance in lieu of a property survey when financing a mortgage on your home. The cost of the title insurance ($250+) is paid by you - the borrower.
In many cases home owners do not keep or may not have an updated survey of the land on which their house sits. The lender wants to protect themselves against any encumberances or changes to the site. They also want to protect themselves against fraud.
I have some clients who do not want this insurance but have no choice as it is conditioned by the lender. I explain to my clients that this insurance - if they choose to add a rider for $50 - can protect them. Upon funding the lawyer will review the details of title insurance. Title insurance can protect you against defects on the property, work orders for suppliers from the previous owners that are not registered on title and forgery.
If you would like more information on title insurance - email me at pauline@mybcmortgage.ca and I will send you some information or you can check out
www. firstcdn.com.
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Closing Costs
What does it really cost you when you buy or refinance?
With so many things to consider when you are buying or refinancing your home some costs can be forgotten. Here are a couple of tips to remember - they are also listed on my website and blog.
1. Property Purchase Transfer Tax - payable by all buyers except first time buyers. Cost is 2% of first $100,000 and 1% for the balance. This cosgt is not covered by your mortgage funds - you must have funds from your own resources at time of closing at the lawyer.
2. Property Taxes - if you are buying you will be responsible for paying your share of the property taxes at the time of closing at the lawyer's office. Taxes are paid by the owner July 1st for the previous 6 months and the next 6 months (Jan 1 - Dec 31st). So if you buy in October you will owe the seller the taxes for October - December of that year - payable at the lawyer. Conversely if you are selling the buyer would owe you the money you have already paid to the city. If you are refinancing your existing home and you have not paid your taxes the lender will require they be paid before funding of the new mortgage. They will not allow you to pay the taxes from the proceeds of the new mortgage. This is very important to remember and advise your broker if you have not paid your taxes so there are no issues at the lawyer.
3. HST - is now 12% and payable on new built homes only. There is no HST on previously owned homes. However, you will pay HST on legal and real estate fees.
4. Legal fees - payable by the home owner to the lawyer at time of funding/closing.
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Mortgage Rates
Effective Oct 5,2010
1 year 2.3%
2 year 2.99%
3 year 3.50%
4 year 3.49%
5 year 3.59%
7 year 4.99%
10 year 5.05%
Variable - 5 year - P-.7% (2.3%)
Home equity line of credit P+.8% (3.8%)
Rate specials for quick close within 45 days. Call me if you want me to run some numbers for you.
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