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Buyers: How much does it cost to close?

Closing costs are the legal and administrative fees you will need to pay before closing on your new home. They are a one-time fee, but there are multiple fees that you may need to know that you might have overlooked or not been told from your lender! This is because these fees will come from your Lawyer in order to close.


Here is what you can expect to pay throughout the buying process!


Before Closing

  1. Deposit - This is usually 5% of the purchase price, and is advised to be paid within 24 hours of acceptance of your offer.

  2. Home Inspection - Cost around $400-$700 paid during the inspection day to the Home Inspection Company. This is commonly recommended not to be skipped to make sure that the property is in good condition. This is one of the conditions in an offer.

  3. Property Appraisal - The cost is usually paid by the lender amounting to $400-$500.



On Closing

  1. Balance of Purchase Price - Commonly termed as the Mortgage Amount, this is calculated as the purchase price less the initial deposit, less your total mortgage amount. The remainder is considered what we call a "down payment".

  2. Title Insurance

  3. Legal Fees - The cost of this fee will depend on the purchase amount of the property.

  4. Land Transfer Tax - CALCULATE HERE

  5. Insurance - This is required in order to close.

  6. Adjustments for Utilities/ Condos Fees/ etc - This is to be reimbursed to the Seller in case they have prepaid the utilities before closing.

  7. Property Tax Adjustment - This is a reimbursement to the Seller’s property taxes paid after closing.


HERE IS AN EXAMPLE OF A RECENT QUOTE PROVIDED TO MY CLIENT FROM THEIR LAWYER


Please note, this is an example and not the final statement of adjustments and will be different for every purchase.


"- My fee- $1,000 plus hst

- Disbursements (ie title search, name search, tax certificate, software charges etc.) approx. $600

- Title insurance - $813.94

- Land Transfer Tax after first time buyers rebate - $30,415

- Registration fee for Transfer and Land Transfer Tax admin fee - $180.00

We hope to have a final amount for you about 10 days before closing and we will set up a zoom meeting to go over the numbers, documents and closing procedure about one week before closing."



On Closing (Conditional)

  1. Provincial Sales Tax - This fee is only applicable to vendors’ chattel purchases, and the amount varies on the purchase price.

  2. Mortgage Broker Commission - The lender can also pay this fee if applicable.

  3. Property Survey - This is not always required, but the usual cost is $1,000-$2,000

  4. HST (Harmonized Sales Tax) - This is only applicable to new constructions: condos, and houses.


After Closing, here are also some charges that you may encounter but not always.

  1. Utility Connection Charges

  2. Renovation Costs

  3. Immediate Repair and Maintenance Costs


This is a snapshot of what you might need to pay, but please remember that not all of these costs would apply in all situations.




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