Is PST charged on CMHC mortgage insurance premiums in Saskatchewan?
This answer covers the law of Saskatchewan.
Whether PST applies to a mortgage default insurance premium in Saskatchewan, and whether you must pay it in cash at closing instead of adding it to the mortgage, is a point to confirm before you sign. The answer turns on the insurance terms and your lender's closing requirements. Do not assume the answer from another province, since provinces treat these premiums differently.
Saskatchewan has no land transfer tax listed in CMHC's provincial fact sheet, but there is instead a provincial fee to transfer property based on the property's value. In a standard Law Society offer-to-purchase template, each party pays their own lawyer, and the purchaser pays the Land Titles Registry fees to register the property in the purchaser's name and to register the purchaser's mortgage.
Ask your lender in writing for a closing cost breakdown that shows the premium, any tax on it, and whether each item is added to the mortgage or due from your own funds. A lawyer or accountant can confirm how the tax applies to your situation.
Key takeaways
- Do not assume how a mortgage insurance premium is taxed or paid based on another province's rules.
- Saskatchewan has no land transfer tax listed in CMHC's provincial fact sheet, but a provincial fee to transfer property applies based on the property's value.
- In a standard Law Society offer-to-purchase template, the purchaser pays the Land Titles Registry fees to register the property and the mortgage.
- Ask your lender for a written closing cost breakdown showing what is added to the mortgage and what you must pay from your own funds.