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Luxury Homes in Winnipeg: Some things to remember
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When you are about to invest a large amount of money on a luxury home you need to remember that there are more things to take into consideration besides the cost of the home. As you add in these extra costs you will find that a luxury home can be even more expensive than you might have thought originally. Don’t give up your dream though! Just take these things into consideration and you will be able to find a big and luxurious home that fits your budget.
Here are 8 things you should remember when you buy your first luxury home:
1. Goods and Services Tax. Luxury homes are often brand new and if it is GST will apply. In fact, the GST will apply to ALL new homes, not just luxury homes. GST does not usually apply to homes that have been lived in though. You should also remember that GST does apply to other services related to buying a house, like appraisal fees and legal assistance. This GST will apply even if the house you are buying is not brand new.
2. Appraisal fee. Financing companies may require a property appraisal before you are lent money for luxury homes and this will be your financial responsibility.
3. Land survey fee. Your lender may ask you to provide an updated survey of the property that you wish to purchase. The land survey will show the boundaries of the property. The cost of the survey will vary from location to location.
4. Land transfer tax. Any time property is purchased in Manitoba, the purchaser pays a land transfer tax that is based on the purchase price of the property. Ask your REALTOR® for more information on the cost of this tax, which CAN be substantial, especially with luxury homes.
5. Mortgage application fee. You might be charged a fee to process your application for a mortgage. Sometimes when you already have multiple accounts with a lender you can arrange to have the fee waived.
6. Mortgage insurance. Mortgage insurance is required by the government if you have a high-ratio mortgage. The cost is added to the mortgage principal and in insurance against the chance of someone defaulting on their loan.
7. Mortgage broker’s fee. Some people use a mortgage broker in order to find a lender and at the time of closing the mortgage transaction a fee is payable. You should check with your mortgage broker about who pays the fee because sometimes the lender will pay the mortgage broker directly.
8. Mortgage life insurance. If you or a co-borrower passes away, the mortgage life insurance will pay for the balance remaining on your mortgage. You can often add the cost of mortgage life insurance to your monthly payments or you can find an insurance policy on your own. You should speak to an insurance agent about your options.
There are a few more things you should keep in mind when looking for luxury homes, so watch this blog for the next 6 things!
Related articles
- Why an NHL return to Winnipeg would be good news for our city (bokauffmann.com)
- Luxury Homes with the most outrageous amenities – Vancouver Real Estate Update (vancouverreflections.com)
- Calgary luxury home sales balloon (calgaryherald.com)
Danielle McGaw is a freelance writer living in small town Manitoba. She has 7 years experience writing online content for blogs and articles. You can find out more about her at her blog or on her Facebook page. Contact her at either place for business inquiries.
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