When you purchase a home, you will need to budget for closing costs.  These costs will be expected to be paid the day of closing.    Never fear, I’m here to help you prepare! Know what you might have to pay for, so you can work it into your budget ahead of time.

Here is a list of the most common and important closing costs when buying a home.  The exact costs will vary based on property purchase, type and location (municipality), but the costs below will give you an idea:

Before Closing

• Deposit (usually 5% of the purchase price, paid within 24 hours of your offer being accepted)
• Property Appraisal ($400- $500, often paid by the lender)
• Home Inspection ($400-700, paid to the Home inspection company at the time of the inspection)

On Closing

• Balance of Purchase Price (the purchase price less your initial deposit. Usually the bulk will come from your lender and become your mortgage–yay!)
• Legal Fees (amount varies depending on purchase price – approximately $1,800 for a $500,000 purchase)
• Title Insurance (sometimes included in your legal fees, $250-$400)
• Mortgage Broker Commission (if applicable, usually paid by the lender)
• Property Survey (if required – $1,000-$2,000)
• Ontario Land Transfer Tax (varies depending on purchase price – see our Land Transfer Calculator)
• Toronto Land Transfer Tax (varies depending on purchase price – see our Land Transfer Calculator)
• Property Tax Adjustment (reimbursement to Seller of property taxes they paid beyond the closing date) http://www.getwhatyouwant.ca/mortgage-calculators
• HST (generally only applicable on new construction condos and houses)
• Tarion Warranty Fees (warranty on new construction condos and houses only, not resale) – click here to estimate Tarion Fees (http://www.tarion.com/homeowners/beforeyoubuy/Pages/Is-Your-Home-Enrolled-And-Does-It-Need-to-Be.aspx)
• Provincial Sales Tax (only applicable on chattels purchased from vendor – amount varies)
• Adjustments for Utilities/Condo Fees/etc (reimbursement to Seller for prepaid utilities, etc.)
• CMHC Insurance Premium (insurance premium charged if you have less then 20% down payment – click here to estimate CMHC insurance)

After Close

• Moving Expenses ($1,000+)
• Utility Connection Charges (varies)
• Redecorating and Renovating Costs (varies)
• Immediate Repair and Maintenance Costs (varies)