Closing Costs and Extras

This is just a reminder of some closing costs and extras that will occur when buying a home. The figures below serve only as an indication of costs; the Agent will not be held responsible for the accuracy of the figures mentioned below. The list serves only as an indication. It is the buyer’s responsibility to verify all figures.

Deposit with Offer: For most average priced homes, the deposit is $1000. However, the trend is towards deposit fees of from 2% to 5% of the purchase value. The deposit monies are a pledge of good faith in the offer and when the transaction closes is used as part of the down payment.

Lawyer’s Fee: The average fee is $500 to $800 plus disbursements. The lawyer has to pay funds to the Municipality and other institutions for things like a Tax Clearance Certificate, Zoning compliance, etc., plus costs for copying, registration of documents and the like. These monies paid out by the lawyer on your behalf are disbursements.

Land Transfer Tax: Up to a purchase of $250,000.00, the cost is 1% of the purchase price less $275.00; between $250,000 and $400,000 it is 1.5%; and 2% on the excess above $400,000.

Mortgage Costs: These vary dependent upon the lender. Such costs include CMHC application fee, appraisal fee, mortgage insurance fee, etc. Ask the lender for details.

Survey or Title Insurance: Either a survey or title insurance is required by the lender. The cost of a survey varies with the property-- $800 and up. Title insurance is approximately $275.00. Title insurance protects the Buyer against title related issues for as long as he owns the home.

Home Inspection: Most Buyers have an insured and certified home inspector examine the home as a condition of purchase. A good inspection takes 3 to 4 hours and costs $300 to $500. A detailed written report is given after inspection. The Buyer is normally present during the whole inspection.

Other Costs: Some lenders will charge a mortgage inspection fee, which ranges from $150.00 to $300.00. Adjustments on closing, such as prepaid taxes, oil tank fill up, and the like are calculated by the lawyer. These costs vary with each property.