UNDERSTANDING REAL ESTATE CLOSING COSTS

When you make an offer on a home, there are several fees that need to be payed by the buyer.


The following costs will be your responsibility upon closing:

When calculating how much money you'll need up front on the purchase of your new home, you'll also need to consider the down payment.

The down payment on a home purchase typically ranges from 5% to 25% of the total value of the home. The obvious source of money for your down payment is either your savings or the proceeds from the sale of a home you already own.

While it is possible to buy a home with as little as 5% down, the amount of your down payment plays a factor in determing the type of mortgage will be able to secure.  You may want to consider whether your mortgage will be conventional, or high-ratio.


What's the difference between a conventional and high-ratio mortgage?

For more detailed information about your mortgage and your closing costs, you should consider working with a certified independant Mortgage Broker.