• Closing Costs

  • When buying a home, buyers always consider the down payment but often forget to take into account the closing costs. The closing costs can be costly so it's important that you have a good idea of what to expect. Here is a list of the most common closing costs associated with buying a home and an estimate of what each item may cost.

  • Legal Fee: $800 - $1200
    The fee charged by your lawyer for their services.

    Disbursements: $400 - $600
    The administrative expenses incurred by your lawyer.

    Mortgage Registration: $75
    The cost to register your mortgage against the property being purchased.

    Title Insurance: $350
    The insurance policy covering the condition of title or ownership of real property.

    Land Transfer Tax: Varies based on purchase price
    If value is < $250,000: Land Transfer Tax = Purchase Price x 1.0% - $275
    If value is > $250,000: Land Transfer Tax = Purchase Price x 1.5% - $1525
    If value is > $400,000: Land Transfer Tax = Purchase Price x 2.0% - $3525
    *$2000 rebate to first-time buyers

    Property Tax Adjustment: Varies
    The amount owed to the seller for property taxes previously paid that cover any portion of the year in which you will occupy the property.

    Tax on Mortgage Insurance Premium: $500 - $1000
    Tax on the mortgage insurance premium (8%).

    Home Inspection Fee: $400 - $600
    Often paid up front but is sometimes added to closing costs.

    Appraisal Fee: $300 - $400
    Some banks/lenders will require an appraisal to confirm the value of the property.

    Pre-Paid Utilities: Varies
    Applicable on some rural properties. If a property is heated with oil or propane, the seller is responsible for filling the tank before transferring ownership and the buyer must reimburse the seller. A full tank of oil can cost $800 - $1000.

    Tarion Warranty: $800 - $1200
    Applies to newly built homes.