This section will allow you to details any acquisition fees generated by the purchase of a building: notary, inspection, evaluation, etc...
- Loan Insurance Premium
The Loan insurance premium is an amount provided by a governmental institution to help the buyer in the process of buying a property (income generating or not). This service is required if the buyer offers less than 25% for the down payment of the property. In most cases, the insurance premium is financed so it is calculated in the buyer's first mortgage. The Financed Fee box needs to remain check at all times. When the Automatic Calculation box is checkmarked (in the Cost and Financing page), the rate will be calculated automatically if the down payment is less than 25%.
- Insurance Premium Tax
Depending on the area, a tax is applicable on the insurance premium. The amount will automatically be calculated based on the percentage entered. This amount must be paid at the time of purchase. Under normal circumstances, this amount cannot be financed. The Financed Fee option must remain uncheck for this fee.
The commission for the realtor will be paid by the seller of the property and not the buyer. However, in certain cases the buyer works with a realtor to help him close a deal so in this case you can input an amount or percentage to be paid as a commission to the realtor.
- Percentage or Amount (Premium and Commission)
You can either enter an amount or percentage to determine the Loan insurance premium and Commission. If you opt to input a percentage, the software will automatically calculate the adequate amount. On the other hand, if you don't know what percentage to add, simply enter the amount then the percentage will be automatically calculated.
- Other Fees
As far as the other fees go, simply add the proper amount or percentage necessary. Of course, if certain amount don't apply (ex: there was no need for an Environment test), simply leave the amount 0$. Evidently, more fees there are, the lower the profitability might look for the first year, but things will look up starting year 2. We strongly suggest that you only add the CMHC Premium so the profitability analysis can be easily compared with another investment property.
- Add Additional Fees
If applicable fees are not represented in the list created by default, simply enter the information in the blank areas. Click Add to have additional areas to fill out.
- Delete a Fee
To delete an entry, simply click on red X at the end of the corresponding fee.
- Calculate Total Fees
To obtain the total fees, simply click on the calculator at the bottom of the window.
- Save
Click on Save to save your new information. If you click on the arrow, the data will be automatically saved and you will be moved to the next window.
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Mots clés::
acquisition
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fee
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fees
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notary
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inspection
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evaluation