Closing Costs

 

When you buy a home, you will be asked for a down payment, usually between 5 and 25% of the total price of the property. You might also have a number of other fees and expenses to pay.

Some of the most common expenses are listed below. These expenses may vary, depending on your area:

Appraisal fee

Required by the lending institution to establish the value of the property. The cost is approximately $175-$185 plus GST

Home Inspection

In most cases when the home that you are purchasing is older, your sales representative will suggest that a property inspection be done. This usually costs between $250 and $300.

Mortgage insurance premium

(can be added to the mortgage amount)

Legal fees & expenses

These fees include the lawyer's fees for service plus any disbursements. Legal fees vary depending on the lawyer and will cost approximately $1,000 - $2,000. It is best to ask your lawyer how much he will be charging you before you agree to hire him.

Title Insurance

Title insurance replaces the need for a survey and other certificates required to close the purchase of your home. It can be obtained by your lawyer for a cost of approximately $175-$225. You'll need to ask your lawyer for further details.

Home Insurance

You are required to obtain home insurance on your home to cover anything from fire to other damages.

GST

(if not included in the purchase price)

Survey

The lending institution requires a survey to ensure the home is situated on the lot within legal restrictions. You can usually obtain a survey from the previous owner. Be sure to put that in your offer as a new survey can cost anywhere from $800 or more.

Land Transfer Tax

This fee is required on every sale. Your lawyer pays it to the government on the closing date. In most cases, this tax is equal to 1% of the purchase price minus $275.00. 1st time home buyers get rebate from local govt. Call Jimmy to find out more.

Adjustments

You are responsible for paying any adjustments, such as property taxes which have already been paid in advance by the previous home owner, as well as any other costs that the home owner has already paid for services which would be payable by you once you move in.
------------------------------------------------------------------------------------------------------------------------------------------------------------------

What happens on closing day? 

Closing day is the day you become the official owner of your home.

Typically, you visit your lawyer's office to review and sign documents relating to the mortgage, the property you are buying, the ownership of the property, and the conditions of the purchase. Your lawyer will also ask you to bring a certified cheque to cover the closing costs and any other outstanding costs.

Once the mortgage and the deed for the property are officially recorded, you become the official owner of the property and your lawyer will call you to pick up the keys to your new home.

Congratulations! You've just bought a home!