When you purchase a home prepare for extra closing costs!

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Before you purchase a home in Ontario, they are extra cost besides the down payment that you should be prepared and aware to avoid surprises. This extra costs are referred to ‘Closing Costs’, which is anywhere from 1.5% to 2% of the total purchase price of the property. Below are some of the ‘Closing Costs’ involved when purchasing a home, click HERE for a full list.  This information is sourced from the ‘Toronto Real Estate Board’.

 

• Home inspection fee: An inspection protects the buyer by revealing any problems in the property that you'd want to know before you move in. 

• Legal fees: You'll also pay for disbursements which are the costs involved in drawing up the title deed, conducting a title search, and preparing and registering the mortgage. 

• Land Transfer Tax: You’ll have to pay Ontario and the City of Toronto (if applicable) land transfer taxes when the property is transferred to your name. First time home buyers qualify for a rebate though! More information HERE.

• Prepaid Utilities & Property Tax Adjustments: The buyer’s lawyer will calculate all the pre paid utilities and property tax bills that already have been paid by the previous owner up to date. Therefore the seller will be credited the prepaid portion on closing at your costs.