Reducing those nasty closing costs!

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. 

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