One of the most challenging aspects of buying a home in today's market is closing costs, especially if you are a first time home buyer. In addition to your down payment (5% or greater of the purchase price) a buyer needs to pay for an inspection ($400-$550), a lawyer (or notary) to close the deal ($800-$1200), possibly an appraisal ($300-$500) as well as GST if the home is brand new. GST can be a huge expense, especially for the first time home buyer that might not have equity coming from the sale of another property.
I just met with a fabulous mortgage specialist, Christina van Soest with TD bank who let me know that TD is able to finance the GST owing on a new home purchase. So for example if you are buying a $350,000 brand new house, there would be $17,500 GST owing. The Federal New Home Rebate would reduce that amount by $6,300 leaving the buyer to come up wtih $11,200, a substantial chunk of change!
TD will now finance that $11,200 through your mortgage. This is great news for buyers that prefer a brand new home to a resale home. There is no GST owing on the purchase of most resale homes (with a very few exceptions). Let's hope this great opportunity with TD gets the Okanagan new home sales a needed boost.