OMG! There is an additional $684.00 in my notary’s fees.
Vanessa recently signed the deed of sale on her townhouse at the notary and has just received her bill. She discovers the amount of $684.00 for which she had not budgeted. But it is not the notary’s fees, which are those agreed upon, that are responsible for this unexpected increase. The $684.00 in question represents the cost of the 9% tax on the CMHC insurance premium. The insurance premium of $7 600, added to her mortgage financing, applies when less than a 20% down payment is made. In Vanessa’s case, she made a 5% down payment on a $200,000 purchase. The insurance premium is 4.00% of the loan total, i.e. $7 600 = $200,000 – $10,000 (5% down payment) = $190 000 x 4.00% = $7 600. The 9% tax is calculated on this premium: $7 600 x 9% = $684.00, which is added to the notary’s bill when the deed of sale is signed.
Thus, the addition $684.00 is not a billing error. The real problem is why Vanessa didn’t know about this tax before going to the notary…
When she arrived at work the next day, she told a colleague about her story. Her colleague replied that when she purchased her house, she worked with a mortgage broker of Planipret for her mortgage. The broker took the time to provide a document containing all the costs related to the purchase of her property, eliminating any unpleasant surprises at the notary. Vanessa now regrets not having consulted a professional mortgage broker and promises herself that she will do so in the future when the times comes to negotiate a mortgage.
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