What will my closing cost be when I buy a home?
There are many costs associated with a purchase of a property. The following information should be considered a general guide rather than a comprehensive list.
- Survey If the vendor does not provide you with an acceptable survey in the Agreement of Purchase and Sale, you will need to obtain a new survey. Approximate cost: $1000+
- Title Insurance A title insurance policy can eliminate the requirement for a new survey. 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: $300-700 (residential)
- Land Transfer Tax The Land Transfer Tax is payable on all purchases. The tax is calculated on the purchase price of a home according to a specific formula. As a guide, you can anticipate the fee to be about 1 % of the purchase price. Approximate cost: Varies
- Legal Fees Legal fees will vary according to the lawyer. Make sure you ask what the fee includes. Approximate cost: $700+
- Disbursements Disbursements are costs that you lawyer will have to pay on your behalf, such as registration fees, photocopies, etc. Approximate cost: $250+
- Statement of Adjustments The purchaser and the vendor are each responsible for their share of taxes, fuel, and utilities. These costs will be reflected in the statement of adjustments. Approximate cost: Varies
- Home Insurance Home insurance premiums will vary from one insurance company to another and according to your insurance needs. Contact your insurance broker for rates. Approximate cost: Varies
- Home Inspection Prior to buying a new home, you should have a home inspection performed to identify any significant structural, electrical or plumbing problems with the home. Some lending institutions require that you have a home inspection completed before approving financing. Approximate cost: $200 – $500
- Mortgage Fees Most mortgage companies charge an administrative fee to register a mortgage document