Closing Costs - those hidden extras that you need to provide for:

  • Legal Fees: Your lawyer is an essential part of your closing, and there is a fee for this work. i.e. searching title and registering it in your name. We can recommend several reasonable lawyers for you to choose from.
  • Home Inspection: A qualified home inspector can set your mind at ease as to the structural and mechanical soundness of the house you are buying and possible future costs you may have to face. Again, we can make reasonable recommendations.
  • Ontario Land Transfer Tax: Applies to anyone buying property in Ontario. The following formula applies:  
    • Up to 55,000 x .5% of total property value
    • From 55,000 to 250,000 x 1.5% of total property value
    • From 250,000 to 200,000 x 1.5% of total property value
  • Toronto Transfer Tax: Applies to anyone buying property in the Metropolitan Toronto area. The following formula applies:
    •  0.5% on the first 50,000
    • then 1% on $50,001 to $400,00 and
    • 2% on any amount over $400,000.

First time homebuyers receive a rebate up to $3,725

  • Property Insurance: This insurance covers the replacement value of your home and contents. Your mortgage lender will require proof that you have insurance before processing a mortgage.
  • Property Taxes: You will have to budget for annual municipal property taxes which are based on the assessed value of your home. New construction is currently assessed at approximately 1.259% of the purchase price. In some cases your lender may include property taxes with your monthly mortgage payment.
  • Survey Fee: Your lender will require an up to date survey. The Vendor may be able to provide one or agree to pay to have one done, or you may have to pay for one yourself- approximately $800.
  • Service Charges: There will be service charges to set up new service and utilities at your new home i.e. telephone, cable, hydro etc.
  • Maintenance Fees: If you are purchasing a condominium, you will be charged monthly maintenance fees that cover the upkeep of the building, concierge salary, and any necessary repairs. These fees often include your utilities. Be very clear on what is included in your maintenance fee.
  • Moving Costs: Movers cost money and need to be booked in advance of moving day.