Closing Costs

When purchasing a home there are costs associated with buying that are above and beyond a down payment.  These can include:

Lawyer’s Fee: Approximately $1,500 to $3,000.  There is usually HST added to the fee quoted by lawyers for the service.

HST on Mortgage Default Insurance: The cost of the mortgage default insurance will be tied into the mortgage payments. 

Appraisal: Approximately $400.  Maybe substantially more for custom or rural homes. 

Title Insurance: Approximately $200 to $400. The cost may or may not be included in the quoted lawyer’s fee. 

Property Insurance: You must obtain property insurance before closing. The cost will vary on the size and type of home you purchase.

Home Inspection: Approximately $300 to $ 1,000.  Pool, chimney (W.E.T.T. Inspection) and septic tank inspections can range from $200 to $500.

Mortgage Adjustment Period: Your mortgage payments will start one calendar month after closing.  You are still responsible for the mortgage interest from the date of closing until your first mortgage payment.

Ontario Land Transfer Tax: For single family or two family homes outside of the City of Toronto

Up to $55,000 - 0.5%

$55,001 to $250,000 - 1% less $275

$250,001 to-$400,000 - 1.5% less $1,525

$400,001 and up - 2% less $3,525

The first-time homebuyer is entitled to a first-time homebuyer rebate reducing the Land Transfer tax up to $2,000 for the principal residence.

Toronto Land Transfer Tax For single-family or two-family homes in the City of Toronto, you pay both city and provincial tax.  The following calculations include Toronto and Ontario land transfer taxes.

Up to $55,000 - 1%

$55,001 to $250, 000 - 2% less $550

$250,001 to $400,000 – 25% less $1,800

$400,001 and up – 4% less $7,800

The first-time homebuyer is entitled to a first-time homebuyer rebate reducing the Land Transfer tax up to $2,000 for provincial tax and $3,725 for Toronto tax for the principal residence.

Closing costs and monthly payments can be determined by downloading my app on your mobile phone at https://cma.me/ingrid