What should I budget for a home purchase?

Before making a home-buying decision, calculate both the one-time and ongoing costs associated with buying and maintaining the home you want.

One-time costs may include:

• Appraisal fees
• Cost to obtain a survey
• Land transfer taxes
• CMHC / GENWORTH mortgage insurance application fee and insurance premium (if applicable) – may be added to the mortgage amount
• Moving expenses
• Legal fees
• Property and School Tax Adjustment
• Heating, Hydro and Water Adjustment
• Title Insurance
• Utility Connections
• Home Inspection Fee, if necessary

Ongoing housing costs include:

• Mortgage payments
• Home Insurance
• Property taxes
• Mortgage life insurance (if applicable)
• Heating, hydro and water costs
• Condominium fees (if applicable)
• Maintenance costs
• Telecommunication costs - phones, internet access, cable (if necessary)

Your lawyer and real estate agent can provide estimates of some of these costs and should consult with you before you sign any documents or make any commitments.

What types of mortgages are available to me?

• Conventional - 'Low Ratio' - The mortgage loan amount is equal or less than 80% of the lesser of: a) what the appraiser states is the value of the home, or b) what it actually costs to buy. In other words, you have a down payment of 20% or more.
• Insured - 'High Ratio' - The mortgage loan amount is greater than 80% but less than 95% of the lesser of: a) what the appraiser states is the value of the home, or b) what it actually costs to buy. In other words, you have less than 20% of a down payment. High ratio mortgages can be insured by Genworth Financial Canada, a private insurer, or Canada Mortgage and Housing Corporation (CMHC), which operate under the National Housing Act (NHA).

What types of mortgage products are available?

From competitive fixed and variable rate mortgages to special offers. You can easily find a Mortgage Solution to suit your needs from our wide selection.

What will my mortgage cost per month?

Use the Scotiabank Mortgage Payment Calculator to determine approximate monthly payments.

Can I pre-arrange my mortgage?

Based on your financial situation, we can provide you with a Scotia Pre-Approved Mortgage Certificate that pre-qualifies you for a maximum amount of mortgage financing at a guaranteed interest rate, for 120 days* from the certificate date. With a Scotia Pre-Approved mortgage you will know the maximum amount of financing which could be available to you**.

* Subject to change.
** Subject to the home meeting Scotiabank residential standards and maximum permitted loan amounts.

Can I increase the amount of my existing mortgage during the term and avoid any penalty?

Yes. When you wish to increase the amount of your Scotia mortgage to obtain additional funds or buy another property in Canada**, we can provide you with a "blended fixed rate". This rate is a blend of your existing mortgage rate and the fixed mortgage rate applicable to the additional funds requested. No interest penalty will be charged but the resulting term of the mortgage must be equal or greater than the remaining term on your existing mortgage. If you have a variable rate mortgage we can also provide additional funds; however, rate blending is not available and a modest interest penalty may apply.

**Subject to the home meeting Scotiabank residential standards and maximum permitted loan amounts.

Can I take my mortgage with me when I move?

Yes. Subject to credit approval, when you move from one home to another in Canada**, you may be able to take your existing Scotia mortgage balance with you, at the same interest rate, for the remaining term. Alternatively, you may be able to combine your existing mortgage balance with additional financing at a blended rate to finance a new home (applicable to fixed rate mortgages only). No interest penalty is charged.

**Subject to the home meeting Scotiabank residential standards and maximum permitted loan amounts.

Can I renew my mortgage early?

Yes. You may be able to renew your mortgage at any time during the term under our Early Renewal Program. Depending on the time remaining until your renewal date, an Early Renewal penalty may apply. Find out more from your Scotiabank Mortgage Representative at your Scotiabank branch.

Can I switch my mortgage from another lender to Scotiabank?

Yes, if you already have a residential first mortgage on your home in Canada with another approved lender, we can help you switch to Scotiabank. Contact a Scotiabank Mortgage representative for details. Certain conditions may apply and prepayment penalties or other costs may be charged by the other lender.

When is mortgage insurance required?

If the amount of the mortgage exceeds 80% of the lending value of the mortgaged property, the mortgage is considered "high ratio". Accordingly, and as required by law, mortgage insurance must be purchased for the full amount of the mortgage.

Mortgage insurance is available from CMHC and Genworth. An application fee and an insurance premium (which can be added to the mortgage amount) are payable to the insurer.

In some cases, Scotiabank may require a mortgage to be insured even if the loan-to-value ratio is less than 80%. For example, the Bank may require insurance as a condition of the loan if the property is considered higher risk (e.g. the home is in a highly volatile real estate market).

Should I consider Scotia Mortgage Protection?

A home is usually the largest single investment made and one worth protecting. Scotiabank offers a Loss of Life Protection Plan and a Health Crisis Protection Plan. In the event of the death of an insured person, or an unexpected health crisis, the insurer (The Canada Life Assurance Company) would pay the outstanding balance of the mortgage (including interest and any deficit in the tax account) up to $500,000.

How much does Scotia Mortgage Protection cost?

Coverage is very affordable. See our monthly premium rate and discount tables for Loss of Life Protection and Health Crisis Protection.

Premiums are based on your age and mortgage balance on the date you apply. When two borrowers are insured for the same mortgage, discounts are applied for each borrower’s calculated premium. Visit a local Scotiabank branch in Canada for more details.

Who is eligible for Mortgage Protection?

To apply for coverage, you must be approved for a Scotiabank mortgage, be 65 years of age for Loss of Life Protection, under 55 years of age for Health Crisis Protection, and a resident of Canada. Coverage will terminate at age 70 for Loss of Life and age 65 for Health Crisis Protection.