Closing Costs

Closing Costs Associated With Your Mortgage
We ask our clients to budget up to 2% of the purchase price of the home or condo to cover closing cost. While these vary depending on the situation, typical costs include:
In most cases, the agreement of purchase and sale will have a clause asking for the vendor to provide a survey to the purchaser at their cost within a certain period of time. If the vendor does not provide you with an acceptable survey, you may need to obtain a new survey. Approximate cost: $650+. In most cases however, the survey is provided by the vendor.
Title Insurance
A title insurance policy can eliminate the requirement for a new survey. Title insurance is an insured statement of the condition of title or ownership of real property, at the time the policy is issued. Approximate cost: $250-275 (residential). First Canadian Title or Title Plus.
Land Transfer Tax
The Land Transfer Tax is payable on all purchases. The tax is calculated on the purchase price of a home according to a specific formula. Contact me for a quote. Land Transfer Tax Calculator
Legal Fees
Legal fees will vary according to the lawyer. Approximate cost: $600 to $800 + Disbursements. We suggest you contact your lawyer for an accurate quotation
Disbursements are costs that you lawyer will have to pay on your behalf, such as registration fees, photocopies, etc. Approximate cost: $400 to $600. We suggest you contact your lawyer for an accurate quotation
Statement of Adjustments
The purchaser and the vendor are each responsible for their share of taxes, fuel, and utilities. These costs will be reflected in the statement of adjustments which the lawyer puts together. Approximate cost: Varies depending on type of property (condo vs. freehold).
Home Insurance
Home insurance premiums will vary from one insurance company to another and according to your insurance needs. In a condominium, the building insurance is included in your maintenance fees and does not form part of the closing costs, unlike a house purchase. Contact us if you need a quotation
Mortgage Application
The lending institution may charge a fee for processing your mortgage application. This is only applicable to cases where the client may have credit issues where they would require alternate or private lenders
Mortgage Appraisal
Approximate cost: $220 – $300
Home Inspection
Prior to buying a home, you should have a home inspection performed to identify any significant structural, electrical or plumbing problems with the home. Some lending institutions require that you have a home inspection completed before approving financing. Approximate cost: $200 – $450+tax.
Status Certificate
Prior to buying a condo, you should request a Status Certificate. This document provides detail on the Condo Bylaws, Rules and Regulations, as well as Finances. Any restrictions or common element restrictions are also detailed in the Status Certificate. Most importantly, it includes information on the condo’s Reserve Fund, which is the amount the condo corporation has set aside to cover unexpected expenses. The Status Certificate is usually paid for by the seller. Approximate cost: $100.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s