Home Closing Costs - Jethro Seymour - Top Midtown Toronto (Davisville Village ,Leaside) Real Estate AgentJethro Seymour – Top Midtown Toronto (Davisville Village ,Leaside) Real Estate Agent
Your search results

Home Closing Costs

Posted by seymour on October 10, 2014
| 0

Closing costs are a list of charges your lawyer presents to you on the closing date of your home.  Many people are surprised at the additional costs over and above the price of the home.  According to the CMHC and Genworth Financial you should have at least 1.5% of the purchase price for closing costs in addition to the down payment (have around 2.5% to be on the safe side).  The costs vary among provinces and cities.

Below you will find a brief explanation of these costs.  Please note these are some of the closing costs you may encounter depending on your specific situation.  Use this as a guideline then talk with your lawyer who can provide a more realistic estimate for your situation.

Appraisal Fee Generally Required with New Homes

An appraisal provides the lender with a professional opinion of the market value of the property.  This cost is normally the responsibility of the and it can cost between $100 – $300.

Home Inspection Fee Generally Required with Resale Homes

A professional inspection of the home, top to bottom, is for the benefit of the buyer. A home inspection can cost anywhere from $300 – $400 and is well worth the investment.  When hiring a home inspector make sure the inspector has liability insurance just in case they overlook something.

Fire Insurance

Mortgage lenders require a certificate of fire insurance to be in place from the time you take possession of the home.  The amount required is generally the amount of the mortgage or the replacement cost of the home. This cost can vary on the property size, amount of coverage, the insurance company and the municipality. The cost can vary anywhere from $250-$600 annually for most properties.

Provincial Sales Tax on Mortgage Insurance

If your mortgage is insured, (CMHC or Genworth Financial), you will be required to pay the applicable taxes on the insurance premium on closing.  While the insurance premium can be added to the mortgage amount, the tax must be paid at closing.

Land Survey Fee or Title Insurance Fee

A recent survey of the property is usually required by lenders.  If one is not available the cost can range between $600 – $900 for a new survey.  In lieu of the survey most lenders today will accept title insurance which can cost considerably less.

Legal Costs and Disbursements

Lawyers and notaries charge fees for their services involved in drafting the title deed, preparing the mortgage, and conducting the various searches.

Disbursements are out-of-pocket expenses incurred during the process such as registrations, searches, and supplies.

Land Transfer Tax

Most provinces charge a land transfer tax payable by the purchaser. The amount varies depending on the province.  Land transfer tax is based on the purchase price.  First time home buyers purchasing a new home may be entitled to a refund.

New Home Warranty

In most provinces new homes are covered by a new home warranty program. The cost to the purchaser for this warranty is approximately $600 and should the builder default or fail to build to an agreed-upon standard the fund will finish or repair the deficiencies to a maximum amount.  For more information on Ontario new home warranty visit http://www.tarion.com.

HST

HST is payable on the purchase of a newly constructed homes only.  If you are purchasing a new home make sure you know who pays this, you or the builder.  On the offer the purchase price will say “Plus HST” or “HST Included” and who gets any HST rebates.  Many builders have included this cost into the purchase price so the buyer does not have to come up with it at closing.

Closing Adjustments

An estimate should be made for closing adjustments for bills the seller has prepaid such as property taxes, utility bills, and other charges.  Any bills after the closing date are the responsibility of the purchaser.  A lawyer will let you know what they are once the various searches have been completed.


For more information on closing costs please complete the form below.

* indicates required field

  • Testimonials

    259 Donlea Drive, Front View - Leaside Home Sale by Top Neighbourhood Realtor Jethro Seymour
    Another Leaside Home Sale by Top Broker Jethro Seymour
    Jethro is reliable, trustworthy, and set very realistic boundaries for us

    “We had received Jethro’s notepads and newsletters for quite some time. Friends in north Leaside had used him to sell their house, so we decided to give him a call when we decided to sell. We contacted two other agents, but once we met Jethro, we knew he was the right person for us.

    We had lived in our Leaside home for 29 years, so we were out of touch with the selling process. Jethro impressed us from the get-go. He was thorough and outstanding with digital marketing, even our friends..."

    More Testimonials
  • Neighbourhood Information

    Leaside Neighbourhood Real Estate

    Leaside is one of midtown Toronto’s most popular and desirable districts. Known for its expansive green spaces and charming, intricately ...
    Read More
  • Community Corner

    Seymour Contests: January 2017 Spa Giveaway

    Happy January, everyone! Last month’s lucky winner, Cathy Philips, won herself a $80 gift certificate to McSorley’s on Bayview. Congratulations! Thank ...
    Read More