Don’t Forget the Closing Costs!
Many first-time home buyers do not take into consideration all the closing costs associated with purchasing a property. The following is a brief list of the closing costs you can expect to pay. Remember that every situation is different. This list may not cover all the costs you will need to pay for your specific needs. Closing costs usually range from 1.5 – 4% of the purchase price.
- Home Inspection: $300- $900+ (costs vary depending on the type, size and age of the property.
- Legal Fees: $500 – $2,000+
- Land Transfer Tax Ontario: The amount depends on the purchase price. Click here to see how much land transfer tax you can expect to pay for your purchase price. If you are purchasing property in the city of Toronto, you will have to pay provincial and municipal land transfer tax. If you are purchasing outside of the city you only need to worry about provincial land transfer tax. *Keep in mind that first-time home buyers are eligible for a land transfer tax rebate of up to $4,000* depending on certain criteria. Click here to learn about this and other rebates available to first-time home buyers in Ontario.
- Mortgage default insurance: (will be rolled into the mortgage). If you put a down payment of less than 20% you will be expected to buy this. Costs vary depending on the purchase price. Click here to find out how much the mortgage insurance will cost for your purchase price.
- Title insurance: $300- $500. Not a legal requirement in Ontario but some lenders may require it.
- Property insurance: Costs vary by policy.
- HST for New Construction: 13% of sale price. There are rebates that buyers may be able to use for this tax.
- Status certificate: $100 – for the purchase of condominiums only.
