The following article is a guest post by Brennan Valenzuela, a writer for Ratehub.ca, a website that allows people to compare Canadian mortgage rates. It also features a comprehensive education centre to help address common first-time home buyer questions. Ratehub is a great source for all the latest Canadian mortgage news.
The housing market in New Brunswick
This year the Canadian Real Estate Association (CREA) forecasts home prices will remain relatively the same over the next two years, at an average price of around $160,000. The Province of New Brunswick has the second lowest average home price in Canada, just ahead of Prince Edward Island. Fact: McCain Foods is headquartered in New Brunswick, which produces a large portion of the world’s frozen French fries — surely a pillar supporting the local housing market!
New Brunswick mortgage rates
Many economists are forecasting New Brunswick mortgage rates to moderately rise over the next two years. However, it’s important to note that mortgage interest rates are still at 10-year lows. This, coupled with the low housing prices, represents a great time to buy a home in the Maritimes.
Additional purchase costs
The down payment is the largest sum of money that you will need to come up with when buying a home in New Brunswick. But be warned, there are additional purchase costs that must be budgeted for. If you’re ready to buy a condo from the Harbourfront Residences because you want a unit that overlooks the Bay of Fundy, you’ll need to account for the following costs before you sign on the dotted line.
Real Property Transfer Tax
Also known as land transfer tax, this is the fee you must pay when you purchase a home in New Brunswick. It’s one of Canada’s smaller land transfer fees and is calculated as 0.25% on the value of your property. For example, the tax on the average home price of $160,000 works out to just $400.
It’s important to always get a home inspector to examine the integrity of your new property. A home inspection will cost upwards of $500 but could save you in thousands of dollars’ worth of repairs. A home inspector will look at things such as the property’s plumbing, air conditioning and roofing, as well as check for mold and other harmful agents.
It’s in your best interest to acquire a legal professional to assist you in your home purchase. A lawyer will oversee the legal paperwork for you as well as handle and submit some of your closing costs for you. The legal fee, although governed by The Law Society of New Brunswick, will vary depending on the lawyer — just remember you can always negotiate!
Although not mandatory, property insurance is recommended to you if you want to protect your new house from possible damage.
Many lenders won’t finance your home purchase if you don’t have title insurance. It is a policy that protects you against challenges to your ownership and any problem related to the title of your home.
If you are purchasing a new home in New Brunswick, such as a unit from Cliffbourne Heights, then you must pay HST on the purchase.
First-time home buyer rebates
The first-time home buyer’s tax credit is available for first-time home buyers as a tax claim that allows you to collect a $750 rebate. With that extra money, you can purchase plenty of fish to pair with your McCain French fries.