We’ve tried to include everything we could think of however, each transaction is unique and you should consult your real estate team to see what may or may not apply to you. Please click on this PDF link to pull up a printable list of real estate closing costs or you can simply view the list below: Typical Real Estate Closing Costs 2013
Real Estate Closing Costs
Today, it is possible to buy a home with no money down however, everyone who buys any form of real estate will have some other costs to consider. Closing costs vary by jurisdiction and transaction but the following chart will give you an idea of expenses to be considered:
|Deposit:||Usually submitted upon acceptance of an Offer to Purchase. The deposit is usually held in trust by the Listing Brokerage and it forms part of the downpayment on the closing date. Typically ranges from $2,500 to 5% of the purchase price|
|Septic Inspection Report:||Approximately $350.00|
|Lawyer’s fees and expenses:||Varies but normally $900 to $1300 for legal fees and disbursements. Does not include Land Transfer Tax.|
|Land Transfer Tax:||This is a provincial tax levied when title to land is transferred. It is payable by the Purchaser upon the registration of every transfer of land. (i.e. on closing day) The calculation of this tax on a single family home in Ontario is as follows:
|Home Inspection:||$300-$400 plus HST. Not mandatory, but recommended!|
|Bank Appraisal Fee:||Usually about $200.00 + HST but the lender may absorb that cost depending on your negotiations|
|Mortgage Application Fee:||Find out whether or not your lending institution charges to process your mortgage application. In many cases, if you are dealing with a bank that you have other accounts with, they will waive the application fee.|
|H.S.T.||Typically, resale homes are exempt from HST unless it has been “extensively renovated.” HST is payable on the fees paid to real estate agents, mortgage brokers, appraisers, lawyers fees, etc. A new home is not exempt from HST even if the home is in an individual’s name but may be rebated in part. HST may be paid by either the builder or the buyer, depending on what is negotiated at the time of purchase.|
|Mortgage Insurance Premium:||This premium is applicable if you are putting less than 20% of the purchase price as a down payment. You have the option of adding the premium to your mortgage and amortizing it over the term of your mortgage. In the latter case, it does not form part of your closing costs as you will pay it over the term of the mortgage. Standard Premiums range from 0.5% to 2.75% of the mortgage amount which you can check here: www.cmhc-schl.gc.ca/en/co/moloin/moloin_005.cfm
Note that HST on the premium is due and payable on the closing date.
|Survey:||$700-$1000 if necessary, on a typical, residential in-town property|
|Title Insurance:||Title insurance is an insured statement of the condition of title or ownership of real property, at the time the policy is issued. Approximate cost $250.00 (residential) and up.|
|Status Certificate:||$100, but only applies to condominiums|
|Tax Adjustment:||Depending on what the Seller has already paid for the year, there will be an adjustment based on the number of days you will own the house in that year.|
|Fuel Adjustment:||In the case of oil heat, the Seller may top up the tank on closing and you would be charged that amount.|
|Service and Utility Connection:||Depends on the service provider many require a deposit from new customers.|
This summary of closing costs for real estate is a guideline only to assist you but should not be relied upon. For a closer examination of costs it is best to contact each party directly.
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