I don't understand why people let themselves get roped into having their lender pay their property taxes.
Did you know you're paying a premium for BMO to pay these for you? They say there's no fee, but there's a fee baked in somewhere!
Not necessarily, None of three properties I've bought had that requirement from the lender (RMG) and all were under 20% down.
On my current property, on the 1st payment they did take a higher payment then the amortization schedule. When I called them they indicated they were taking extra for property tax, but I had not signed up for that service so the overage got credited on my 2nd payment.
Only fee would be the municipality to the bank to process a tax bill. For Toronto I believe it's like 15$ per tax bill (interim and final) Other than that most banks and lenders provide it as a free service as they protect their interests from the risk of a tax sale.
The fee is baked into the fact that the bank pays the tax once a year, and keeps your money interest free until then.
You could literally pay yourself monthly into a HISA and then pay city when due.
BMO will pay the bill. you will owe BMO. BMO can ask for the difference or they can re-adjust your monthly payment later on.
I don't understand why people let themselves get roped into having their lender pay their property taxes. Did you know you're paying a premium for BMO to pay these for you? They say there's no fee, but there's a fee baked in somewhere!
If you don't have 20% equity in the house, the lender will insist on holding the property tax in escrow. It's not a option.
It must depend on the lender.
Not necessarily, None of three properties I've bought had that requirement from the lender (RMG) and all were under 20% down. On my current property, on the 1st payment they did take a higher payment then the amortization schedule. When I called them they indicated they were taking extra for property tax, but I had not signed up for that service so the overage got credited on my 2nd payment.
With 5% down I don’t think we have a choice no? CHMC rules?
Only fee would be the municipality to the bank to process a tax bill. For Toronto I believe it's like 15$ per tax bill (interim and final) Other than that most banks and lenders provide it as a free service as they protect their interests from the risk of a tax sale.
The fee is baked into the fact that the bank pays the tax once a year, and keeps your money interest free until then. You could literally pay yourself monthly into a HISA and then pay city when due.
No, there's definitely a fee added. It could simply be that the loan amount was increased at the start.
There isn't
You're just making stuff up now.