Buying a Home in Alberta - Just got more expensive

Well, folks, it seems that the costs of buying a home has gone up.  No, not the price of the home itself, (average price in Calgary is down 2.1% February 2015 compared with February 2014) but the cost for land title registration and the cost for mortgage insurance (CMHC fees).


First the registration of title and the mortgage.  There are two segments to these fees.  There is a flat fee which is going up 50% from $50 to $75.  But that is just the tip of the iceberg.  The variable portion is based on the dollar value of the home and mortgage.


Currently a title for a $500,000 home purchase with a $400,000 mortgage would have a $140 fee for the new title and $150 fee for mortgage registration for a total of $290.


Under the new fee structure, those fees rise to $675 for the new title and $555 for the mortgage registration for a total of $1,230.  This is an increase of over 324%.  Ouch!!  While these costs are small compared to the price of the home, it does mean you will need to have more cash available when it comes time to see your lawyer and sign the documents for your new home.


And, it doesn’t end there.  The premiums for mortgage insurance is also rising on June 1st.  Again.  This is the second jump in a year as the premiums went up last June as well.  Here is the breakdown.

 

Loan-to-Value Ratio

Standard Premium
(Current)

Standard Premium
(Effective June 1\P, 2015

Up to and including 65%

0.60%

0.60%

Up to and including 75%

0.75%

0.75%

Up to and including 80%

1.25%

1.25%

Up to and including 85%

1.80%

1.80%

Up to and including 90%

2.40%

2.40%

Up to and including 95%

3.15%

3.60%

90.01% to 95% — Non-Traditional Down Payment

3.35%

3.85%

 

Hey folks, don’t shoot the messenger!  This wasn’t my idea.  Happy House Hunting!

 

 

 


 

 

 

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Data supplied by CREB®’s MLS® System. CREB® is the owner of the copyright in its MLS® System. The Listing data is deemed reliable but is not guaranteed accurate by CREB®.
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