BUYER’S CLOSING COSTS

“Calculators can only calculate – they cannot do mathematics” – John A. Van de Valle

The purchase price of the property is not the only cost of buying a home. When buying a new home in Ontario, it’s important to take closing costs into the consideration. The estimate of these additional expenses is usually between 3-5% of the purchase price.

The following costs can be expected at closing:

  • Provincial Land Transfer Tax ( see another topic: Land Transfer Tax Explained)
  • Municipal Land Transfer Tax, if applicable (see another topic : Land Transfer Tax Explained)
  • Lawyer fees (legal fees, title search fees, etc.)
  • Adjustment for property taxes and utilities
  • Home inspection costs, if applicable
  • Home insurance
  • High ratio mortgage insurance, if applicable (if your down payment is less than 20%)
  • Personal expenses (moving costs)

Unfortunately, you can’t avoid closing costs . You can though try to lower them by taking advantage of rebates offered to first time buyers and negotiate the best deals you can get with your lawyer, your lending institution and companies you hire for moving and home inspection.