If you’re considering buying a property in Toronto, remember to brace yourself for the nerve-wracking Closing Costs. With the right knowledge though, you will be able to budget for the estimated payment amount beforehand. So no need to panic.
Listed below are the usual and most important closing costs:
Closing Costs: Before Closing
Deposit: Once your offer is accepted, you usually pay 5% of the purchase price within 24 hours.
Property Appraisal: Costs between $400-$500. Oftentimes, the lender makes this payment.
Home Inspection: The Home inspection company charges about $400-700 to carry out an inspection.
Closing Costs: On Closing
Legal Fees: The purchase price usually determines what your legal fees will be. But approximately, a $500,000 purchase should attract a charge of around $1,700.
The Balance of Purchase Price: Most often, your lender handles a bulk of this payment (minus your deposit) and this becomes your mortgage.
Title Insurance: Maybe among your legal fees, usually within the range of $250 – $500.
Mortgage Broker Commission: May not be applicable but if it happens to be, the lender will likely take care of it.
Property Survey: If needed, it can be within the range of $1000-$2000.
Ontario Land Transfer Tax: Not fixed, depends on your purchase price.
Toronto Land Transfer Tax: Not fixed, depends on your purchase price.
Property Tax Adjustment: This simply means refunding to the property seller, taxes he/she paid after the closing date.
HST: Generally, this is only applicable if you’re buying a newly constructed house or condo.
Tarion Warranty Fees: Only applicable to newly constructed houses and condos.
Adjustments for Condo/Utility Fees: You have to reimburse the seller for costs such as prepaid utilities.
CMHC Insurance Premium: You will be charged this insurance premium if your down payment is less than 20%.
Closing Costs: After Closing
Moving Expenses: From $600 and above.
Utility Connection Charges: Not fixed, it varies.
Renovating and Redecorating Costs: Varies
Repair and Maintenance Costs: Varies