Kelowna, BC (August 15, 2011) Curious about the type of property you can purchase for $350,000 across Western Canada? RE/MAX of Western Canada pulled a few listings to see what kind of properties Western Canadians can obtain for $350,000 in selected markets. See the chart attached.
So how do you pay for it? According to business partner TD Canada Trust, at a purchase price of $350,000, a 5% minimum down payment of $17,500 is required. Then you will need to add Canadian Mortgage Housing Corporation (CMHC) insurance fees which would be approximately $10,000. If you choose to add the CHMC fees into the mortgage price, the total mortgage is now approximately $333,500. The only way to avoid CMHC fee is to put 20% down or more.
Don't forget about closing costs! According to TD Canada Trust, buyers will also need to show the lender that they have the closing costs in your account. The majority of lenders usually like to see around 1% of the house price, so in this case you would need to show $3,500, in addition to your down payment. The actual cost for closing will depend on the lawyer that you select; however, the typical cost for this service is about $3,000.
Approximate mortgage amount: $333,500
Mortgage rate: 3.89% (this will depend on the lender, terms etc. that you choose) based on 5 year fixed rate, 30 year amortization.
Approximate monthly payment: $1,600
Note: This does not include property taxes. You can pay property taxes in a lump sum at the end of each year or have them added onto your monthly mortgage payment. With an estimation of $2,500 a year for taxes you are looking at a monthly payment of approximately $1,800.
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