Home Buyers Closing Checklist
Home Buyers Closing Costs
When buying a new home, there are expenses outside of your mortgage that you will need to include in your budget.
To help you, here are some of the expenses you should anticipate.
Usually you can expect to pay about 1.5% of the purchase price on closing costs.
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Closing Adjustments
There are a number of property expenses that the seller may have prepaid and will need to be reimbursed for by the buyer. They include:
- Municipal property tax
- Utilities such as heating, hydro and water
- Condo maintenance fees, if applicable
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Estimated Cost:
Up to $1000 (varies by prepaid expenses | |
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Legal/Notary Fees and Disbursement
The lawyer reviews the Offer to Purchase, searches the title, draws up mortgage documents and looks after closing details. |
Can vary between $1,300 and $2,500. | |
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Appraisal Fees
Appraisal of property is only required for conventional mortgages to confirm market value before finalizing your mortgage. |
Between $150 and $500. If insured by CMHC, Genworth or AIG, there are no appraisal fees | |
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Land Transfer Tax
Fee charged to the purchaser when a property changes ownership. This is generally the largest portion of closing costs on a resale home. |
Can range from 0.5% to 4.0% of the value of the property.(Toronto properties are subject to a seperate city land transfer tax)
Ontario Land Transfer Tax Rates
Toronto Land Transfer Tax Rates | |
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GST/HST
New home purchases are subject to GST/HST but may qualify for a GST/HST rebate. Resale homes are not subject to GST/HST. The builder may include GST/HST in the purchase price. Be sure to ask, not knowing could cost you thousands of dollars more at closing then you had anticipated. |
More information on the rebate and the rebate form are available from the Canadian Revenue Agency | |
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Interest Adjustment
You will need to pay any interest accrued between your closing date and your first scheduled mortgage payment. This has to be paid on the Interest Adjustment Date. |
Between $100 and $1,000 (varies by closing date and selected payment frequency) | |
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Title Insurance Fee
Many lenders accept Title Insurance, in lieu of a survey. Title Insurance can protect against fraud, forgery, title defects, and survey problems. |
Approximately $165 – $225 for title insurance | |
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Home Inspection Fee
Recommended before finalizing offer to purchase because it may reveal areas where repairs are required. |
Between $150 and $500 | |
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Property/Fire Insurance
Proof of insurance required by closing date and it must at least cover replacement value of home and contents. |
Up to $800 annually | |
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Status Certificate
Required only if you are purchasing a condo. It outlines a condominium corporation’s financial and legal state of affairs. |
Up to $100 | |
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* Prices/costs may vary by region and service provider. |
