IK Financial Metarials
Mortgage

What Closing Costs Should Home Buyers Expect?


Home buyers expected to make a down payment in order to finalize the purchase of their home, but some overlook the fact that there are closing costs that must also be paid before they will be able to move in.

Having a firm understanding of these potential closing costs is incredibly important, as you don’t bring cash to the table when you make your offer; you do so when it is time to take possession. If you don’t have this cash, not only will you not be able to finalize the purchase of your new home, but you will also be in violation of the contract agreement to buy.

The following are a list of fees that may or may not be applicable to your application. Please note these are estimates and they can change based on your circumstances and type of transaction that you are doing. Typically, 2-3% of the home’s price is a guideline. This can be lower if you are a First Time Homebuyer.

Fee Type and its Amount


Provincial Land Transfer Tax
Average cost varies by property value. For example: a $900,000 home purchased in Ontario, outside of the GTA, would incur land transfer tax of $14,475.

*First-time buyers in Ontario can apply for a rebate of up to$4,000.
Link: Rebate on Provincial Land Transfer Tax

Municipal Land Transfer Tax (Toronto)
Average cost varies by property value.
Link: Rebate on Municipal Land Transfer Tax

Appraisal Fee (if applicable)
Average cost is between $300 - $1,000 depending on the size and location of the home.

Lawyers Fee
Average cost is between $1,500 - $2,500, including both fee and disbursements for title search fees, couriers and administration.

Home Inspection (if applicable)
Average cost is between $350 to $750 per inspection.

Home Property Insurance
Average cost is between $500 - $ 2,000. Depending on the size, location and type of property the costs may be higher. Condo insurance will not be as high as freehold property coverage.

Property Survey
Average cost vary depending on the size and location of the property. Approximately
$1,000 - $2,000.

Title Insurance
Varies depending on freehold properties, condos and amount of the mortgage charge. Starting fee is typically around $250 and can be as high as $2,500.

Prepaid Property taxes, Utility Bills, ect
$400 - $2,000

Moving Expenses
Depending on the amount of work involved. Expect between $200 - $3,000

Mortgage Penalty (if applicable)
Varies depending on the mortgage balance, length of term remaining, current rates and your existing rate. It will be either a 3 month interest penalty OR an interest rate differential penalty, whichever is greater.

Status Certificate (condominiums)
Average cost is between $100 - $250



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