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Home Buyer's Guide - All About Mortgages

A Step-by-Step Guide on the Home Purchase Process

What effects your credit and how to improve your credit

Understanding what you can afford and what is looked at when getting a mortgage

What is required for a down payment on a home and other solutions to obtaining the required funds

Understanding the basic Mortgage Options

A list of the costs you should be prepared for


Speak with The Mortgage Duo as soon as possible.  This will allow you to shop in a price range that is realistic for your situation. At the same time, make sure you are prepared financially for the standard costs associated with a purchase of real estate.  



List of Estimated Costs to be Prepared for:

$1000 - $5000
  • Deposit – When making an offer on a home, you may be required to put down a depsoit. This amount varies, so make sure to ask your realtor. Keep in mind that this deposit can later go towards your down payment.


  • Appraisal – Depending on the property and location, an appraisal may be required. 



  • Home Inspection – A Home Inspection is generally not required, but it is recommended to be well informed on the current state of the home you will be purchasing. 

Minimum 5%
1% of $200k + 2% Over that
$ Property Specific
  • Property Transfer Tax – (BC Only) When you purchase property in BC you will pay a one time tax fee of 1% of the first $200,000 + 2% of anything over that. If you are a first time home buyer and you meet the qualifications, you may be exempt or partially exempt from paying this tax. 



  • GST – When purchasing a brand new property, GST will be charged.  Your realtor will advise you of this amount, and it does not apply to used homes.



  • Legal Fees – This is a fee charged by your lawyer or notary for the completion and registration of your mortgage and property.



  • Property Tax Adjustment – You will be responsible for your portion of the current years property taxes on the home. Property purchased before July 2nd you will most likely get a credit and property purchased after July 2nd, you will most likely owe taxes.


  • Title Insurance – This is a one time fee and is required when obtaining a mortgage. It is an insurance policy that protects you, the home owner, against challenges to the ownership of your home or from problems related in the title to your home. The policy provides coverage against losses due to title defects, even if the defects existed before you purchased your home. A title defect is a problem with the title which prevents free and clear ownership.



  • Interest Adjustment – The amount of interest owed to the lender for the time period between the date your mortgage money is advanced and your pay cycle begins.



  • Down Payment – The portion of the purchase price that will be required up front when obtaining a mortgage. The minimum required is 5% (10% of portion over $500k). Contact The Mortgage Duo to find out what you will qualify for.


  • Mortgage Broker Fee – Our services are free!

$ Mortgage Specific
Premium will vary on Down Payment and Purchase Price
  • Mortgage Default Insurance Premium (If Applicable) – In Canada, if you are contributing less than 20% of the value of the property as the down payment, you will be required to pay Mortgage Default Insurance. This is an insurance policy that compensates a mortgage lender (a bank) for losses caused by a mortgage default. This will be included in your mortgage and does not need to be paid upfront.

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