Buying a new home can be expensive and not only do you have to think about the purchase price but you also have to think about all the other unglamorous closing costs that go along with it. Below is a list of your main costs on closing.
- Survey - If the seller should not provide you with an acceptable survey in the Agreement of Purchase asnd sale, a new survey may cost approximately $800. Title Insurance may be a good alternative.
- Legal Fees and Disbursements - Legal fees vary according to the lawyer. Make sure you ask what the fee includes. Estimate a total of $1500 or more plus HST.
- Land Transfer Tax - Unfortunately Land Transfer Tax has to be paid on Real Estate Purchasers and in the City of Toronto you will have to pay the Provincial Tax plus the City of Toronto Tax. If you are First Time Homebuyer you will get an exception on your Land Transfer Tax. The lawyers at Feld Kalia have an amazing Land Transfer Tax Calculator
- Title Insurance - A title insurance policy can be purchased to insure oneself against any loss occasioned by a defect in title, an adverse claim or as an alternative to a survey. Cost is dependant on the purchase price of the home.
- Statement of Adjustments - Buyer and Seller are each responsible for their share of taxes, fuel and utilities prorated to closing date.
- Home Insurance - Home insurance varies from one insurance company to another. Contact your broker for rates. Approximately $800 - $1,400 can be paid annually on an average 3 bedroom, single family home. Insurance rates are higher on multi-family dwellings.
- Mortgage Appraisal - Plan for approximately $300 for an appraisal. This fee may sometimes be waived.
- HST - Most residential resale homes are exempt for HST but the services involved in the transaction will be subject to HST such as Lawyers Fees, Appraisals, Processing Fees, Home Inspections, Insurance, Moving costs, etc..
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