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TimLacroix
03-30-2015, 08:10 AM
This summer, it’s going to cost more to get a mortgage in Alberta starting July 1, 2015.

People considering buying a house this summer should be aware of some changes to the fees associated with being a land owner, and with getting a mortgage. Last week, the Province of Alberta released its new budget containing pretty significant increases in fees for people like you who might be getting a Calgary mortgage or buying property.

Ex: $500,000 purchase and a mortgage of $400,000 currently costs approx. $290 for land titles and mortgage registration.

Effective July 1, 2015 that same registration will cost approx. $1,230.

A difference of $940.

Read More on this and other AB Budget fee hikes! (http://cgymortgage.com/blog/Alberta+Mortgage+Fees+Going+Up+This+Summer%3A+Alberta+Budget+2015)

Sugarphreak
03-30-2015, 08:27 AM
...

sputnik
03-30-2015, 08:33 AM
Just be thankful Alberta doesn't have a "land transfer tax" (yet).

TimLacroix
03-30-2015, 08:36 AM
Originally posted by sputnik
Just be thankful Alberta doesn't have a "land transfer tax" (yet).

This is true. Some provinces have a 1% and up land transfer fee.

ExtraSlow
03-30-2015, 08:36 AM
Yes, but you have no alternatives. Just like liquor prices, everything runs through the alberta governments hands.

I am 100% convinced this is how Jim Prentice spends his friday nights:
http://www.shrinkgeek.com/wp-content/uploads/2009/06/dunecat.jpg

Sugarphreak
03-30-2015, 08:50 AM
...

sabad66
03-30-2015, 09:16 AM
First time buyer here so apolgoies if this is a noob/obvious question, but can you include this $1230 + other closing costs in your mortgage somehow or do these need to be paid up in cash?

What other types of closing costs are there that you would need cash for? I have heard lawyer fees, anything else?

tpurcell4
03-30-2015, 10:08 AM
Originally posted by sabad66
First time buyer here so apolgoies if this is a noob/obvious question, but can you include this $1230 + other closing costs in your mortgage somehow or do these need to be paid up in cash?

What other types of closing costs are there that you would need cash for? I have heard lawyer fees, anything else?

Hijacking your thread Tim!

If you are purchasing then these will need to paid cash (or credit if you qualify to debt service the fees). If you are putting more than just the minimum 5% down payment it will be easiest just to restructure how much is for down payment and how much is to pay fees.

As for other fees,
- Lawyer fees: Range from $750- $1000 +/- with most lawyers plus GST
- Legal disbursements (if a lawyer has to write additional cheques or payout additional debts, they may charge extra fees for this)
- Possibly Title Insurance (apprx $150 - $250), but this is not always necessary
- Appraisal fees if not insured through CMHC, Genworth, or Canada Guaranty (some exceptions may apply for Foreclosures/private sales) - Approx $280 - $350 for the average home in Calgary should you have to pay this
- Inspection fee, Approx $450 - $650 (optional, but highly recommended)
- Condo doc review (if applicable) approx $350-$500 (optional, but highly recommended)

That should cover the bulk of possible extra fees.

Tim, any additions?

Cheers,

Todd

tpurcell4
03-30-2015, 10:09 AM
Originally posted by ExtraSlow
Yes, but you have no alternatives. Just like liquor prices, everything runs through the alberta governments hands.

I am 100% convinced this is how Jim Prentice spends his friday nights:
http://www.shrinkgeek.com/wp-content/uploads/2009/06/dunecat.jpg

:clap:

sabad66
03-30-2015, 10:17 AM
Originally posted by tpurcell4


Hijacking your thread Tim!

If you are purchasing then these will need to paid cash (or credit if you qualify to debt service the fees). If you are putting more than just the minimum 5% down payment it will be easiest just to restructure how much is for down payment and how much is to pay fees.

As for other fees,
- Lawyer fees: Range from $750- $1000 +/- with most lawyers plus GST
- Legal disbursements (if a lawyer has to write additional cheques or payout additional debts, they may charge extra fees for this)
- Possibly Title Insurance (apprx $150 - $250), but this is not always necessary
- Appraisal fees if not insured through CMHC, Genworth, or Canada Guaranty (some exceptions may apply for Foreclosures/private sales) - Approx $280 - $350 for the average home in Calgary should you have to pay this
- Inspection fee, Approx $450 - $650 (optional, but highly recommended)
- Condo doc review (if applicable) approx $350-$500 (optional, but highly recommended)

That should cover the bulk of possible extra fees.

Tim, any additions?

Cheers,

Todd
thanks! one more question, does an RRSP HBP withdrawal have to go 100% towards DP, or can it be used for other costs related to purchasing a home? for example if i withdraw the max 25k out of my RRSP, can i put 20k towards DP and then use the other 5k towards these fees? Or do i have to put the full 25k towards DP?

:hijack:

codetrap
03-30-2015, 10:26 AM
.

Cos
03-30-2015, 10:28 AM
.

Manhattan
03-30-2015, 10:33 AM
But that's how a democracy works. It's either this or the higher wealth disparity in the states with gated communities and such. Those lazy newfies ruining things for everybody.

Sugarphreak
03-30-2015, 10:40 AM
...

tpurcell4
03-30-2015, 05:50 PM
Originally posted by sabad66

thanks! one more question, does an RRSP HBP withdrawal have to go 100% towards DP, or can it be used for other costs related to purchasing a home? for example if i withdraw the max 25k out of my RRSP, can i put 20k towards DP and then use the other 5k towards these fees? Or do i have to put the full 25k towards DP?

:hijack:

Good question. The ideal use for the funds is for down payment, however, if you read through the terms of the Home Buyer's Plan, it does not indicate what the funds have to be used for.

CRA HBP (http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/cndtns/menu-eng.html)



Do I meet the RRSP withdrawal conditions?

- You have to be a resident of Canada at the time of the withdrawal.

- You have to receive or be considered to have received, all withdrawals in the same calendar year.

- You cannot withdraw more than $25,000.

- Only the person who is entitled to receive payments from the RRSP can withdraw funds from an RRSP. You can withdraw funds from more than one RRSP as long as you are the owner of each RRSP. Your RRSP issuer will not withhold tax on withdraw amounts of $25,000 or less.

- Normally, you will not be allowed to withdraw funds from a locked-in RRSP or a group RRSP.

- Your RRSP contributions must stay in the RRSP for at least 90 days before you can withdraw them under the HBP. If this is not the case, the contributions may not be deductible for any year. Neither you nor your spouse or common-law partner or the related person with a disability that you buy or build the qualifying home for can own the qualifying home more than 30 days before the withdrawal is made.

- You have to buy or build a qualifying home for yourself, for a related person with a disability, or to help a related person with a disability buy or build a qualifying home before October 1 of the year after the year of the withdrawal.

- You have to complete Form T1036, Home Buyers' Plan (HBP) Request to Withdraw Funds from an RRSP for each eligible withdrawal. .

tpurcell4
03-30-2015, 05:52 PM
^^
You are able to access the $25,000 for the purchase of a home as long as you qualify. How you disburse the funds after withdrawal becomes your decision from there, as long as you purchase a home with the funds.

TimLacroix
03-30-2015, 05:57 PM
For some reason I was not getting the notifications on this thread.

Thanks Todd for jumping in and answering some of the questions. It looks like my notifications are working again. Sorry Beyonders for the delayed response.

tpurcell4
03-31-2015, 04:17 PM
Always here to help :)

TimLacroix
04-02-2015, 11:09 AM
A few days ago we posted information about the Alberta Budget and the fact that fees are going up for people considering buying a house. The new fees come into play July 1, 2015.

Click Part 2-Calculate Your Calgary/Alberta Mortgage Fee Increase (http://cgymortgage.com/blog/Calculate+Your+Calgary+Mortgage+Fee+Increase) to see details.