These costs are addition to the down payment required to purchase the Home. On completion date you require approximately 1.5 %to 4% of the purchase price and the down payment to complete the transaction. The costs vary across provinces and the municipalities.

Your lawyer can provide a fair estimate of the closing costs, however the below mentioned information will provide explanation of these costs. Please note that that this is a guide line and may vary from property to property and city to city.

Appraisal Fee:

Before lending the money the money the lender asks the Appraisal to provide an opinion of a property's fair market value, based on an inspection and analysis of the property. The residential appraisal fees range from $250.00 plus depending on the square feet of the living area of the Home or the Homes in remote area.

Home Inspection Fee:

In our opinion it is extremely important for the buyers purchasing older properties should get the property inspected by professional inspector who has liability insurance just in case of a mistake incurred. The average price range of a typical home inspection is $275-395 depending upon the size of the Home. Higher fees are charged for commercial and industrial real estate

Home Insurance/Fire Insurance:

Before the mortgage funds are advanced on closing day all the lenders require a certificate of insurance to protect their investment. The amount required us usually at least the amount of the mortgage or the replacement value on the Home. The cost can very on the type of coverage, size of dwelling and value of the contents and liability. This insurance broker is the best resource to obtain the price for the coverage.

Land Survey Or Title Insurance :

Lenders require a recent land survey of the property on closing date and if one is not available, it normally costs $600-900 depending upon the location and size of the Home. Now a day’s most lenders will accept title insurance, at a much lower price of $200 plus depending upon the purchase price.

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, tax certificate and supplies plus GST if applicable

Land Transfer Tax:

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. Some municipalities may charge additional their own Land Transfer Tax in addition to the Provincial Tax. Provincial and Municipal grants are available for first time buyers in some Provinces and Municipalities.

New Home Warranty :

New homes in many provinces are covered By a new home warranty program. The cost to the purchaser for this warranty is in the range of $325-$750 depending upon the purchase price and should the builder default or fail to build to an agreed-upon standard the fund will finish or repair the deficiencies. For more information on Ontario new home warranty visit   http://www.tarion.com.

Provincial Sales Tax on Mortgage Insurance:

If you have arranged an insured mortgage with CMHC or Genworth Financial or any other insurance provider, you will be required to pay the applicable taxes on the insurance premium on closing. Mortgage insurance premium can be added to the mortgage amount or can be paid on closing; however the taxes must be paid on closing.

Closing Adjustments
 
Necessary adjustments made between the Buyer and the Seller for property taxes, utilities bill and other charges already paid by the Seller, as determined by the lawyers.  Lawyer will let the Buyer know what they are once the various searches have been completed.

GST

On most Professional fees G.S.T is charged by Federal Government. GST is payable on the purchase of newly constructed home but make sure that this tax will be paid by you or the builder on closing. Therefore on the offer, the purchase price will say “GST Included” or “Plus GST” and who gets applicable rebates. Majority of the builders include this cost into the purchase price so the Buyer does not have to come up with it on closing.