When purchasing a home, the closing costs can be considerable. See below for typical charges to expect when you buy a home. It is important to plan for and have the ability to pay them.
For the most part, they are due on “closing”, this is the date you take possession of your home.
For example a $400,000 home would expect to have closing costs of about $6,000 to $8,000.
Budget more for buying a new home from a builder.
No, the builder is not trying to squeeze more money out of you, but HST is payable on new home purchases. Fortunately you will likely not have to pay the full amount. Your lawyer and/or the builder will discuss the federal government partial rebate on new homes.
Additionally the provincial government runs programs from time to time to give first time home buyers a partial rebate on Land Transfer Taxes.
Price of Property Taxable Amount (Calculate Amount Payable)
Under $55,000 Multiply by .005
$55,000 - $250,000 Multiply by .010 then deduct $275
$250,000 - $400,000 Multiply by .015 then deduct $1,525
Over $400,000 Multiply by .020 then deduct $3,525
Purchase costs (approximate) $900 to $1,000 plus HST and
Disbursements $700 to $1,000
Approximate $400 to $500 plus HST
This cost is for a single family residential property. Multifamily buildings will cost more and prices will vary depending on the number of units in the building.
Title Insurance $270 to $378
(purchase price up to $500,000)
Title Insurance $162 to 193
Registration of Deed $71
Tax Certificate $45 to 72
Water Certificate $72
Gas Certificate $17
Hydro Certificate $11 to $17
Title Search $200
Status Certificate (condo only) $113
Survey (if needed) $1,200
Adjustments i.e. taxes, condo fee as required
As in the case of a purchase, items such as oil, property taxes and condominium fees are adjusted for up to the day of closing.
If the Seller, for example, has paid the property taxes or condominium fees which, when calculated on a daily basis, covers a period beyond the closing date, the Seller is reimbursed by the Buyer on closing.
If the Seller has underpaid, the Buyer receives a credit on closing. If the house is heated by oil, the Seller fills the tank for closing and is reimbursed by the Buyer for a full tank.
NOTE: above costs are approximate but will provide a good basis for budgeting purposes. Not all of the above items are required. Additionally, with the purchase of “Title Insurance” (your lawyer will discuss with you) the purchases of many of the above items are no longer needed. Title Insurance can therefore pay for itself.
You never pay us any commission when you work with us as we never charge our buyers for our service When you buy a home and you have an agent representing your best interests it's good to know how your agent gets paid.
There are circumstanses where you'll be liable to pay your buyer agent some commission costs.
When you hire us to represent you in your purchase, you will never have to pay us a cent !
We work for our buyer clients and protect their interests fully and never ask them to pay us anything.
You can buy a resale home, a new construction home or condo, an income property, a rural property or farm, a commercial property, vacant land and even a For Sale By Owner and we'll still be able to navigate you through all of the obstacles and paperwork and it won't cost you anything because we will ensure that the seller will pay us.
Don't get to the point of making an offer on your new home, only to discover that you're going to have to pay your agent thousands of dollars more on top of the purchase price of the home because of the legalities of your buyer agency agreement.