should be for Birthdays and Christmas!
Make sure you have an idea of what your closing costs will
be prior to your possession date.
Both your Lawyer and Lender will be able to give you a
fairly accurate cost breakdown, so be sure to ask!
We’ve put together a list of the common closing costs, so
you can start to plan ahead!
costs for Buyer: (Typically budget 1-1.5% of the purchase price)
All costs are approximate and will vary depending on the price,
location, and type of home. Some prices may vary between Law
firms. Please check with your Lawyer and Lender for a more
$500 - 800
times you will not need to buy one. It used to be that lenders
required a survey as part of the mortgage requirements, but that
is no longer the case. Sometimes
we are able to get a copy from the Seller, and if they do not have
one, you may not need it.
$300 - 400
cost of title insurance increases for homes over $500,000,
depending on price of home.
insurance has been widely used for many years now, and has become
just a part of a buying transaction. There are several different
companies to choose from, and your lawyer will be able to give you
the differences between them. Is it necessary? We think so! Look
at our blog posting on
Title Insurance and read more about it!
Land Transfer Tax -
pays, no matter how many homes you buy throughout your lifetime! First
Time home buyers can get a rebate of up to $1725. The
rate has not changed since June 1, 1989.*
of the value of the consideration up to and including $55,000,
of the value of the consideration which exceeds $55,000 up to
and including $250,000, and
of the value of the consideration which exceeds $250,000, and
of the amount by which the value of the consideration exceeds
$400,000 for land that contains at least one and not more than
two single family residences.
The above information was taken from the Ontario Ministry
of Finance website: http://www.rev.gov.on.ca/en/tax/ltt.
you buy a Condominium you will want a current Status Certificate
from the Condo Corporation (don’t worry, we will put in a
condition to request it in the offer). It will give you an
indication of the workings and finances of the corporation, so
it’s a good thing to have. There
are also Estoppel Certificates and Party Wall agreements that can
be ordered for attached homes such as Townhomes as well, but they
generally are less common and rarely requested.
Fire Insurance -
$250 - 500.
Agreement of Purchase and Sale stipulates that a buyers’ fire
insurance coverage begins on the day of closing.
It will be a condition of the lender for you to have fire
insurance in place before they will advance the mortgage, so make
sure to get it set up before you go in to the Lawyer’s office
for final signing.
Lender Fees -
$100 - 250 (if required)
Processing Fee- $165 - 185
Lenders will charge for all of the steps and paperwork to get the
mortgage in place, so check with your Lender.
The cost is less for new construction (approximately $75.)
– cost varies
fees (are usually added to the mortgage, so check with your lender
to be sure). The
insurance premium is calculated as a percentage of the loan and is
based on the size of your down payment. (The cost increases
significantly for self employed people without 3rd
party income verification). A
75% loan to value will be 0.65%, while a 95% loan to value can be
up to 2.9%.
out the Canada Mortgage and Housing (CMHC) website for accurate
Legal Fees –
$1700 - 2000, depending on Law firm including disbursements &
disbursements with one mortgage:
of Deed: $71.50
of Mortgage: $71.50
and utility searches OR title insurance: $270.00
of Title & Execution Certificate: $150.00
photocopies, postage, etc: $75.00-
- New Home
Warranty (Terion): $600.00
(property taxes, heating fuel, condo
- HST –
Other costs associated
inspection $350 - 450
costs- Packing, Boxes, Movers or Truck- varies
properties have taxes, whether condo or freehold. The yearly
amount can usually be found on the MLS® listing.
Some lenders will insist that you pay the taxes as an
add-on to the mortgage amount. The city of Ottawa also
allows for taxes to be paid in installments. Check with the
city website: http://www.ottawa.ca