Leanne and Fritz just had their offer of $405,000 accepted on a new home! They are over the moon as they have been looking to purchase their first home for some time when finally, this beautiful home went on the Montréal market for $420,000. The offer was over their budget and now they can only afford a down payment of 5%. They understand they will need to purchase mortgage loan insurance from the Canada Mortgage and Housing Corporation (CMHC) at 4% of the mortgage. (Note: ignore provincial sales tax on the CMHC insurance premiums).

Leanne and Fritz forgot that they also need to pay Transfer Duties (also called "Welcome Tax") on this home. 

what are the transfer duties?

Answer rating: 100% (QA)

SOLUTION Purchase price of the home 420000 Offer accepted for 405000 Dow... View the full answer