The following article is a guest post by Brennan Valenzuela, a writer for, 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.

Who could resist purchasing a home in Newfoundland and Labrador? With its stunning coastlines and natural wonders, you may be fortunate enough to spot breaching whales or icebergs.

Plus, the advantage of buying property in Newfoundland is the price of the average home, which is cheap relative to the rest of Canada. The CMHC predicts house prices in the province will average $257,500 in 2012 compared to the national average of $369,677.

Mortgage Rates

Newfoundland mortgage rates could see a moderate rate increase within a year, especially since the nation’s mortgage rates are currently hovering at record lows.

With affordable home prices and low mortgage rates, now may be an opportune time to purchase a property in Newfoundland. You could even find yourself calling Harbourside Executive Condominums and Spa along St. John’s Harbour your new home. But before you move in, you’ll need to consider the following purchase costs, in addition to your mortgage loan and down payment.


Harbourside Executive Condominiums and Spa by Nolanhill

Newfoundland Registration of Deeds Act

In Newfoundland and Labrador, the registration of deeds, also known as the land transfer tax, is based on the property value and mortgage amount. For amounts that do not exceed $500, only a flat fee of $100 is charged. But for anything greater, a flat fee of $100 is charged plus forty cents for every hundred dollars over $500. For example, the land transfer tax on the average Newfoundland home of $257,500 is $1,128.

Legal Fees

Having a real estate lawyer by your side is a smart decision. They handle all the necessary legal paperwork and closing cost submissions. The cost of hiring a lawyer differs depending on the province, but prices can range upwards of $1000. You must also be prepared to cover costs of disbursements spanning from courier to registration costs.

Property Insurance and Title Insurance

Ensure your home is protected from damage by getting property insurance. The cost will depend on your property’s value, insurance company and municipality.

Title insurance is necessary to protect yourself from ownership challenges to the deed. Your home purchase will not be financed by a lender unless they are certain the home is on the land described on the deed and mortgage.

Home Inspection

duckworth bell street

Duckworth Bell Street by Henry Bell Developments and The Hardman Group

Take out the guesswork of inspecting your new home yourself by hiring a home inspector. They will examine possible structural flaws so you can avoid paying thousands of dollars in repair costs. Home inspectors charge fees of around $500 depending on the size of the property, the distance they must travel, and the type of building.

First Time Home Buyer Rebates

If this is your first time buying a home, you can qualify for the first-time home buyer’s tax credit that can be claimed on your personal tax form which rebates a maximum $750.

After you’ve taken care of the purchase costs and legal documents, you’ll be ready to move into your Newfoundland home. And if you’re lucky, it could very well be the new Duckworth Bell Street condo that overlooks the vibrant city of St. John’s.

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