KNOW YOUR CLOSING COSTS
Closing costs can increase your condo's price tag by roughly 1.5% to 4% of the purchase price. On a $400,000 condo, that can range between $6,000 and $16,000. These costs may include a land transfer tax, bank appraisal fee ($300), legal fees (roughly $1200), as well as high ratio mortgage insurance premium, required if you make a down payment of less than 20% of the purchase price. The premium is hefty: between 1% and 4% of your outstanding mortgage, depending on the down payment (the amount is often added to your mortgage principal).
For pre-construction units, closing date is the day the building is officially registered by builder; this is almost always several months after your occupancy date (the day you move in). If you buy a new condo from floor plans, expect to pay two months' worth of maintenance fees, plus occupancy fees until the building is registered. Only after the closing date will you begin paying down your mortgage.