No Surprises On Closing When You Plan AheadFor Typical One Time Costs
Land Transfer Tax This is the biggest extra to be prepared for. These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. There are Land Transfer Taxes for Ontario and there is a second land transfer tax for Toronto, as well.
CLICK HERE TO VIEW THE LAND TRANSFER TAX CALCULATOR & TAX REBATE INFO CMHC Fees The Canada Mortgage & Housing Corp. is required to insure all mortgages that have less than 25 % down payment (also called high ratio mortgage). The insurance rate is) 0.5 % to 3.75 % of the loan depending on the down payment. The insurance can be added to principal mortgage amount or paid at closing. Mortgage Brokers Fees A fee, usually payable at time of closing, may be charged by a mortgage broker to arrange a mortgage on your behalf. Occasionally mortgage brokers may also charge an application fee. Be sure to ask your broker to clarify this ahead of time. Legal Fees Your lawyer is an integral part of the buying process and in addition to his or her fee, you will have hard cost “disbursements” which are costs involved in conducting a title search and drawing up the title deed. Sometimes legal fees charged by the lender can be saved, if your lawyer draws up the mortgage.In that case you would pay your lawyer to prepare and register the mortgage. Adjustments Adjustments include property tax adjustments, utility bills, maintenance fees and interest adjustments. (An adjustment takes place when the seller has already paid for something in advance and wants to be credited for the unused portion). Home Insurance You usually cannot close your property without home insurance. The mortgagee must be notified of the policy and if it's a condominium, the association must be notified. Basic homeowners insurance can cost upwards of $400. Home Inspection (optional) A home inspection is optional, but the peace of mind in knowing exactly what you are getting when you buy a home can be well worth the fee. The cost is approximately $500 + HST paid at time of the inspection - usually done within a couple of days of acceptance of the offer. Goods and services tax (HST) You usually don’t have to pay HST on the purchase of a used resale home. However on a new home the entire purchase price is taxable. If it is a new home costing $350,000 or less and is to be your primary residence, you qualify to receive a rebate of 36 % of the GST paid - to a maximum of $8,750. Title Insurance(optional) Title insurance is growing in popularity in Canada - but what is it exactly? Should you get it? Do you need it? Whether title insurance is right for you is something to be discussed with your lawyer, as it depends on the circumstances of your transaction.
