CLOSING COSTS

LEGAL FEES
 
Lawyers/Notaries fees for closing the sale range according to the complexity of the deal but they should range from $400 - $700.  Which would include Land Title transfer fees and other Strata documents related.

POTENTIAL MORTGAGE PENALTIES

Penalties are only effective if you have a closed term mortgage, otherwise indicated on your contract.  If you decide to port the mortgage to a new purchase within an approximate 90 day period.  Most conventional banks will allow you to carry over the same terms and conditions to the new property without penalty.

 See below on how to calculate the Rate Differential Amount:  *Courtesy of TD Canada trust.


* INTEREST RATE DIFFERNTIAL AMOUNT (IRD)
An IRD amount is a compensation amount that may apply is you pay your mortgage principal prior to the maturity date or pay the mortgage principal down peyonf the annual prepayment privillage amount.  IRD is the difference betweene the the mortgager's current balance and the present value * of a new mortgage at the prevauling rate for a mortgage.  The IRD amount is calculated on the amount being prepaid using an interest rate.



Compensation Amounts
If you wish t o make a prepayment  of more t han 15% of t he original borrowed amount  in any single year, t here will be a c ompensat ion c harge. T he c ompensat ion c harge is equal t o t he great er of T hree Mont hs' Int erest  Cost , or an Int erest Rat e Different ial Amount .
Here is how you c an est imat e t he T hree Mont hs' Int erest  Cost and t he Int erest  Rat e Different ial Amount . We use a prec ise formula t hat  c redit s you for t he amount  of princ ipal you would have paid off eac h mont h. Y ou c an obt ain t he exac t  amount by c ont ac t ing your branc h.
1. To estimate the Three Months' Interest Costs:
St ep 1: ________  ( A ) amount  you want  t o prepay St ep 2: ________  ( B ) t he Int erest  Rat e under your
Mort gage expressed as a dec imal  ( for example, 6.75% = .0675 )
St ep 3: ________  ( C ) A x B = C St ep 4: ________  ( D ) C ÷ 4 = D, D is your est imat ed T hree
Mont hs' Int erest  Cost s 2. To estimate the Interest Rate Differential Amount:
St ep 1: ________  ( A ) t he c urrent  int erest  rat e under your Mort gage expressed as a dec imal  ( for example, 6.75% = .0675 )
St ep 2: ________  ( B ) t he c urrent  int erest  rat e t hat  we c an now c harge for a mort gage t erm offered by us wit h t he t erm c losest  t o your remaining t erm. T he int erest  rat e will be our post ed int erest  rat e for t he t erm minus t he most  rec ent  disc ount you rec eived
St ep 3: ________  ( C ) A -  B = C, whic h is t he differenc e bet ween your c urrent  int erest  rat e and t he int erest  rat e in B above  ( writ e C as a dec imal )
St ep 4: ________  ( D ) amount  you want  t o prepay St ep 5: ________  ( E ) number of mont hs for t he remaining
t erm of your Mort gage St ep 6: ________  ( F )  ( C x D x E )  ÷ 12 = F, F is your
est imat ed Int erest  Rat e Different ial Amount
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Compensation Amounts

If you wish t o make a prepayment  of more t han 15% of t he original borrowed amount  in any single year, there will be a compensation charge. The compensation charge is equal to the greater of  Three Months' Interest  Cost , or an Interest Rate Differential Amount .Here is how you can estimate the Three Months' Interest  Cost and the Interest  
Rate Differential Amount .

We use a precise formula that credits you for the amount  of principal you would have paid off each month. You can obtain the exact amount by contacting your branch.

1. To estimate the Three Months' Interest Costs:

Step 1: ________  ( A ) amount  you want  to prepay. 
Step 2: ________  ( B ) t he Interest  Rate under your Mortgage expressed as a decimal
( for example, 6.75% = .0675 ).
Step 3: ________  ( C ) A x B = C. 
Step 4: ________  ( D ) C ÷ 4 = D, D is your estimated Three Months' Interest Costs.

2. To estimate the Interest Rate Differential Amount:

Step 1: ________  ( A ) the current interest rate under your Mortgage expressed as a decimal
( for example, 6.75% = .0675 )
Step 2: ________  ( B ) the current interest rate that we can now charge for a mortgage term offered by us with the term closest to your remaining term. The interest rate will be our posted interest  rate for the term minus the most recent discount you received.

Step 3: ________  ( C ) A -  B = C, whic h is t he difference bet ween your current  interest  rate and the interest rate in B above  ( write C as a decimal ).
Step 4: ________  ( D ) amount  you want  to prepay. 
Step 5: ________  ( E ) number of months for the remaining term of your Mortgage. 
Step 6: ________  ( F )  ( C x D x E )  ÷ 12 = F, F is your estimated Interest  Rate Differential Amount  .Print this page.


REAL ESTATE FEES

Contact your Realtor details.