home buying ?

[SWP]

I'm about the purchase a home newly built. The price is $700,000. I'm suppose to give the builder a deposit of $40,000. So $640,000 with 20% upfront, does that mean I need a mortgage from the bank of $512,000. Basically, I want to know if the initial upfront signing deposit is subtracted from the cost of the mortgage.

 

[WetSeeker]

The deposit is subtracted from the purchase balance remaining. If you deposit 20% of $700,000 that is $140,000. Your mortgage would be $560,000.
Not sure where you got the $640,000 - that has nothing to do with the purchase price. Maybe you left out information.
You would also have closing costs, land transfer fees, legal, registration, possible development charges etc.
You should get a real estate lawyer to review your contract and suggest amendments if you do not understand the 'all in' costs. Prepare a detailed budget for yourself.

 

[superstar_88]

A newly built home for 700 grand? Is this a shack?

 

[fall]

I'm about the purchase a home newly built. The price is $700,000. I'm suppose to give the builder a deposit of $40,000. So $640,000 with 20% upfront, does that mean I need a mortgage from the bank of $512,000. Basically, I want to know if the initial upfront signing deposit is subtracted from the cost of the mortgage.

Mortgage is compute based on the total price paid. $40K is just a deposit. So, if you want to have 20% upfront, you need to pay $140K and take a mortgage for $560K. You pay $40K now and $100K at closing.

 

[RichardG2020]

A newly built home for 700 grand? Is this a shack?

It might not be a detached home. It could be a semi or townhome.

If it’s a detached home, it’s probably not in the GTA or on the very outskirts like Oshawa/Clarington.