OMG! There is an additional $1 026.00 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 $1 026.00 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 $1 026.00 in question represents the cost of the 9% tax on the CMHC insurance premium. The insurance premium of $11 400, 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 $300,000 purchase. The insurance premium is 4.00% of the loan total, i.e. $ 11 400 = $300,000 – $15,000 (5% down payment) = $285 000 x 4.00% = $11 400. The 9% tax is calculated on this premium: $11 400 x 9% = $1 026.00, which is added to the notary’s bill when the deed of sale is signed.

Thus, the addition $1 026.00 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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