Closing Costs

When purchasing a property in Ontario, many first time buyers underestimate the amount needed to complete their purchase. In addition to the purchase price itself, there are several other expenses that need to be factored into the budget in order to facilitate a smooth and successful closing. These costs are commonly referred to as “Closing Costs.” ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀ ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀ Generally speaking, Closing Costs average anywhere from 1.5-4% of the purchase price, although the actual amount may be higher or lower depending on factors such as location, down-payment, or property type. ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀ ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀ While not exhaustive, the following is a list of the most common closing costs involved in the purchase of a home: ⠀⠀⠀

⠀⠀⠀⠀⠀⠀⠀⠀⠀ ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀ 1. Legal Fees Want to add a caption to this image? Click the Settings icon.

2. Disbursements 3. Registration Fees 4. Title Insurance 5. Ontario Land Transfer Tax 6. Municipal Land Transfer Tax 7. Adjustment Costs 8. HST 9. Tarion Warranty 10. Home Insurance 11. CMHC Insurance Premium 12. Provincial Sales Tax ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀ ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀ While not all of the above may be applicable to your transaction, the ones that are can add THOUSANDS OF DOLLARS onto your purchase. Knowing what to expect ahead of time can help you prepare financially, and avoid any unwelcomed surprises that may hinder your closing. ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀ ⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀⠀ If you need assistance, please feel free to call. I would be glad to help.