Summary of Closing Costs
1. Land Transfer Tax:
Payable on all purchases.
2. Legal Fees:
Legal fees are negotiable. Make sure you ask what services are included. Approximately $600.00.
3. Disbursements:
Legal costs which the lawyer will pay on your behalf, i.e. registration fees, photocopies, etc. Approximately $500.00.
4. Statement of Adjustments:
Buyers and Sellers are each responsible for their share of taxes, fuel, utilities, maintenance fees, etc.
6. Home Insurance:
Home insurance varies from one insurance company to another. Contact your broker for rates.
7. Mortgage Application:
Approximately $150.00. May be waived by financial institution.
8. Mortgage Appraisal:
Approximately $235.00. May be waived by financial institution.
9. HST:
Most residential re-sale homes are exempt from HST. Most services involved with the transaction will be subject to HST such as:
* Lawyer's fees
* Appraisals
* Processing fees
* Home Inspections
* Insurance
* Moving costs
* Real estate fees
Note: Substantially renovated houses are subject to HST if purchased from the Builder/Renovator.
* * * * * * * * * * * * * * * * * * * * *
This is a general guide and there may be other costs associated in the purchase of your property.
Example for a $300,000 purchase:
| Ontario Land Transfer Tax |
$ 2,879.00 * |
| Legal |
600.00 |
| Disbursements |
500.00 |
| Insurance |
200.00 |
| Mortgage Application |
150.00 |
| Mortgage Appraisal |
235.00 |
| Sub-Total |
$ 4,660.00 |
| First Time Home Buyer |
|
| Land Transfer Tax Refund |
(2,000.00) |
| HST on Services |
219.05 |
| Total |
$ 2,879.05 |
| |
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The estimated closing costs on the purchase of a $300,000 home would be approximately $2,900 with adjustments.
* Land Transfer Tax is not subject to HST.
Note: When purchasing property in the City of Toronto, there is an additional City of Toronto Land Transfer Tax that is approximately equal to the Ontario Land Transfer Tax.
