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Buying A Home
For a new home buyer, the journey to homeownership is about navigating a series of key steps—from securing pre-approval and understanding closing costs (like land transfer taxes, legal fees, and title insurance) to making a competitive offer and moving through inspections and final closing.
Closing Costs
When purchasing a home in Manitoba, buyers should budget for several closing costs in addition to the purchase price. One of the primary expenses is the Land Transfer Tax (LTT), calculated based on the property’s value, with rates ranging from 0.5% to 2%. Legal fees, typically between $1,000–$2,000, cover essential services like title searches and document preparation.Title insurance, costing around $250–$400, provides protection against potential title issues. If the down payment is less than 20%, buyers may also need to pay mortgage default insurance, with premiums ranging from 2.8–4% of the mortgage amount.Additional costs may include adjustments for prepaid expenses like property taxes or utilities, a home inspection (approximately $400–$600), and moving expenses, which can range from $500–$2,000. Buyers should plan for these costs, typically amounting to 1.5–4% of the home’s purchase price, to ensure a smooth and stress-free closing process.
Interest Rates
Interest rates represent the cost of borrowing money from a lender, expressed as a percentage of the loan amount. In the context of mortgages, the interest rate determines how much you'll pay in addition to repaying the principal loan. Rates can be fixed, staying the same throughout the loan term, or variable, fluctuating based on market conditions.A lower interest rate typically results in smaller monthly payments and reduced overall costs. It's important to consider both the rate and the loan term, as even small differences in rates can significantly impact your budget over time.Always shop around and consult with a mortgage professional to find the best rate for your needs. I can also make a few recommendations if you want.The prime rate in Canada today, is currently 3.00%. The prime rate, also known as the prime lending rate, is the annual interest rate Canada’s major banks and financial institutions use to set interest rates for variable loans and lines of credit, including variable-rate mortgages. (source:Bank of Canada)
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