Buying a new home is an exciting time, but there are also a lot of things to think about. Here is a checklist to make sure your purchase and mortgage process go as seamlessly and stress-free as possible.
Other than the cost of your home itself, what else is there? Here’s a list of costs that you should be aware of, that will help you understand which home you can really afford.
Down Payment – minimum of 5% of purchase price.
Home Inspection Fee – it is always a good idea to have a professional inspect the home for deficiencies or potential upcoming repair costs. This is done prior to the completion of a firm offer.
Legal Fees – includes lawyer’s fees plus any disbursements required to transfer the property. These vary so check for estimates from a few reputable solicitors.
Tax Adjustments – you will be responsible for paying the taxes for the portion of the year which you own the property, on the purchase date.
Land Transfer Tax – first-time homebuyers may receive a discount.
Mortgage Insurance – if the down payment is less than 20% of the purchase price, a default insurance premium on the mortgage amount is required through the CMHC or another provider.
Home Insurance – arranged on the property in the event of fire or other damage.
Life/Disability Insurance – optional, but is available to cover amount of mortgage in event of the death of you or your co-borrower.
Moving Costs – dependent on how far and who is helping you move.
Appraisal Fee – if 20% down, many financial institutions will reimburse the appraisal fee to you on the purchase closing date.
It's important to ask questions and understand all your options. Here are a few questions to ask your lender to help you choose the mortgage that's right for you:
• What terms are available?
• Are you allowed to increase monthly payments if extra funds are available from time to time?
• Can extra payments be made on principal? When? How much?
• Are there renewal fees?
• Are weekly and bi-weekly payment options available in addition to monthly payments?
• Are there penalties for paying the mortgage out prior to the end of the term?
• Can the amount borrowed be increased at any time?
• Can you provide me with a pre-approval so I know what I can afford?
• What is the difference between semi-annual compounding and simple interest?
• Does the financial institution offer simple interest?
• Does your financial institution finance all types of properties, including co-ops and co-ownerships?
Ready to learn more about purchasing a home? The lending team at the Estonian Credit Union is happy to answer any of your questions, and get you on your way to owning your dream home. We have everything from regular mortgages to co-op loans!
Join us for our upcoming seminar, Buying Your First Home 101, on Wednesday, February 10th at 7:00 pm. The seminar will be presented by our Retail Lending Manager, Liisa Keevallik, and will cover topics ranging from what to expect from your realtor, to what funds can be used as a down payment.
RSVP today to Miina at or (416) 465-4659.

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