Home Closing Costs

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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.

 

Estimated Cost:

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

Up to $1000 (varies by prepaid expenses)


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.


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


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


HST

New home purchases are subject to HST but may qualify for a HST rebate. Resale homes are not subject to HST. The builder may include 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.


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)


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


Home Inspection Fee

Recommended before finalizing offer to purchase because it may reveal areas where repairs are required.

Between $150 and $500


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


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


 

* Prices/costs may vary by region and service provider.