Estimated Closing Costs

SUMMARY OF PURCHASER CLOSING COSTS

( As a general rule, it is advisable to budget approximately 2% of the Purchase Price)

1. SURVEY:

If the vendor should not provide you with an acceptable survey in the Agreement of Purchase and Sale , a new survey will cost approximately $750.00 and up.

2. LAND TRANSFER TAX:

(Payable on all Purchases): There is a province of Ontario Land Transfer tax that applies to the purchase of all homes.  However, the City of Toronto has implemented a second land transfer tax that is equal to the provincial Land Transfer Tax.  If you are a first time home buyer you are exempt from the City of Toronto Tax on homes up to $400,000.  Over that you will be charged the extra tax on the amount over the $400,000 price .

3. LEGAL FEES: Legal fees vary according to the lawyer. Make sure you ask what the fee includes. Approximately $750.00 and up plus disbursement

4. DISBURSEMENTS:

There will be other costs which the lawyer will have to pay on your behalf, ie. registration fees, photocopies, etc. Approximately $450.00 and up.

5. STATEMENT OF ADJUSTMENTS :

Purchaser and Vendor are each responsible for their share of taxes, fuel and utilities .

6. HOME INSURANCE:

Home insurance varies from one insurance company to another. Contact your broker for rates.

7. MORTGAGE APPLICATION:

Processing Fee – Approximately $214.00

8. MORTGAGE APPRAISAL:

Approximately $150.00

9. G.S.T. /H.S.T.

Most residential re-sale homes are exempt from G.S.T./H.S.T. Most services involved

with the transaction will be subject to G.S.T./H.S.T. for example:

· Lawyer’s Fees

· Appraisals

· Processing Fees

· Home Inspections

· Insurance

· Moving cost etc.

· Real Estate commissions

*Substantially renovated houses are subject to G.S.T./H.S.T.

Other costs may be associated with purchasing property. This is a general guide only.

Example for a $200,000.00 purchase

Survey $750.00
Land Transfer $1725.00
Legal $750.00
Disbursements $450.00
Insurance $400.00
Mortgage Application $150.00
Mortgage Appraisal $214.00 (not on Land Transfer Tax)
Total $4439.00
G.S.T. on Services $310.73
Total $4749.73
Therefore on a $200,000.00 residential purchase, the estimated closing costs would be between $4,500 and $5,000.

Please note that the above numbers are subject to change at any time.  However assuming that you need 2% of purchase price as a first time home buyer over and above your downpayment is an excellent rule of thumb for your budget.  For  the most up to date numbers contact us at (416)462-1650 and we will be happy to review the latest information with you.

You can find our Mortgage Calculators at
Mortgage Calculators Or get started with a Mortgage Application at Mortgage Application.