*According to Mortgages.ca, lenders request appraisals and the borrower (seller) pays the appraisal cost. However, many home buyers, especially first-timers, order one on their own to protect themselves. Furthermore, closing costs can’t usually be paid by the seller on the buyer’s behalf in Canada. This varies depending on where you you live in Canada. Spending Earnest Money Given to You Don’t believe that earnest money given at the time an offer is accepted is yours until the deal has closed and been recorded. Too many stories tell about sellers who used up the deposit money before closing the deal. When the transactions did not occur, for reasons — such as repairs or financing — the buyers have had to fight or go to court to get a refund. According to the Canadian Imperial Bank of Commerce, in Canada, buyers must provide a deposit to the seller within 24 hours on an offer of purchase being made (the exception is Quebec where it is not mandatory). Effective since February 15th, 2016, the minimum down payment for new mortgages has been modified. The new breakdown is as follows: see your mortgage provider for more details, (certain conditions may apply in the province of Quebec). • For homes with a purchase price less than or equal to $500,000 the minimum down payment is 5%. • For homes with a purchase price greater than $500,000 and less than $1 million, the minimum down payment is 5% of the first $500,000 plus 10% of the remaining balance.
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