Since April 20, 2007, the required down payment is just 20% (rather than 25%) of the total price of your condo. This amount, which you are required to pay on the price will be deducted from the total price of the condo, with the remaining 80% to be financed by a mortgage. If you are unable to make a 20% down payment, you will be required to take out mortgage insurance with the Canadian Mortgage and Housing Corporation (CMHC) or GE (Genworth). At that point, it is possible to acquire a unit with as little at 10% or even 5% down. This premium for the mortgage insurance will then be added to the amount of the loan and will be subject to a 9% provincial insurance tax payable at the time you sign the deed of sale at the notary’s office. Your bank broker will deal with the CMHC or GE Genworth to obtain this insurance.

This is another alternative available to you, if you don’t have the required down payment. It calls for using funds in your RRSP to purchase your condo. Under specific conditions, each buyer is entitled to withdraw a maximum of $20,000 from his RRSP without paying tax on the withdrawn amount. However, this amount must be repaid over 15 years, with repayment starting after a maximum of 2 years.

One-time costs

• Notary’s fees
• Real property transfer tax (Welcome tax) based on the pre-tax sale price of your condo
• Moving costs
• Connection of public and private services (telephone, cable…)

Monthly

• Condo fees
• Mortgage payments
• House insurance

Annual

• Municipal and school taxes

This tax is calculated as follows, based on highest value between the city evaluation and the total purchase price: The first $50,000 is taxed at 0.5%, the amount between $50,001 and $250,000 is taxed at 1.0%, while amounts exceeding $250,000 are taxed at 1.5%. For example, in the case of a condo priced at $205,000, the total amount of the transfer tax would be $1,800, i.e. : $50,000 x 0,5% = $250 $205,000-$50,000=$155,000 x 1% = $1,550 This tax is payable within six months following the transaction.

All deposits must be by cheque payable to SEC Square Benny. Credit cards are not accepted as deposits or as payment of extras.

The federal and provincial taxes are shown on your preliminary contract, along with tax rebates applicable to each level of government.

Municipal and school taxes are based on the municipal property evaluation — and not on the price of our unit. Consequently, you must wait for the evaluation, which will be completed in the months following construction; it is generally lower than the total price of your unit. However, for 2007, the municipal real estate tax rate in NDG-Côte-des-Neiges was approximately $1.3842 per $100 of the municipal evaluation and $0.33464 per $100 evaluaton for the school taxes. This represents a tax rate of 1.71884% per year for 2007.

If you would like to make the maximum down payment (i.e. 20% of the total amount shown on your preliminary contract), you can write cheques payable to SEC Square Benny in instalments of 5% of the total amount of your contract, according to the following schedule: upon signature of the contract, before August 31st, 2008, before February 1st, 2009 and upon signing the deed of sale at the notary’s office.

Square Benny allows you to profit from its privileged status with two different institutions in order to obtain the better offer. You must decide between one of these two institutions, either Laurentian Bank of Canada or Caisse Populaire de Solidarité sociale, to assist you in your transaction. Please contact one of their representatives to learn more about their offers. They will gladly meet you at the location of your choice. If, for any reason, you still prefer to do business with a different institution, you will be charged a coordination and administration fee of $ 2000 + taxes.