Closing Costs vary from deal to deal and client to client. Only your conveyance Lawyer or Notary will be able to provide exact numbers for your closing costs. However, to give you an idea of the typical costs related to Buying or Selling real estate, we have put together this list.

Appraisal - Talk to your Mortgage Broker about whether or not you need to pay an appraisal fee and if so how much it is. Appraisal fees can range from $175-$400 depending on many factors.

 

Adjustments - These are costs where you compensating the current owners for monies that they have prepaid that flow into when you will own the property. A good example is Property Taxes (charged by the City or Municipality) If you buy a condo with a completion and adjustment date of December 1st, you will be having the use of the property for the month of December. However, the current owner has prepaid taxes for the entire year. So, on Statement of Adjustments at Closing, you will reimburse them for approximately 1/12 of the total tax bill, for your portion of that year's taxes. The following year you will be responsible for the taxes for the entire year.

 

GST - Goods and Services Tax is charged on homes and condos that are brand new and have never been occupied. It can also apply in circumstances where a property has been substaintially renovated. There are also times where the GST has been deffered by the previous owner and will need to be paid on closing when you complete on your purchase. Your Realtor will be able to explain whether or not there will be a GST implication on your purchase. The government also offers a rebate of part of the GST paid under certain circumstances, which can reduce your total tax bill. Refer to the Government's webpage about GST on housing for more info.

 

Home Inspection - We at TAC Real Estate recommend that a Buyer hire a Home Inspector to professionally inspect a home they are interested in in every circumstance. The amount must be paid the the inspector regardless of whether or not you end up buying the home. However, if there is an issue discovered during the inspection that makes you decide not to go ahead with the purchase, we would say that is money well spent. Inspections can range from $300 - over $1000. See our Recommended Professionals page (this will be a page in the 101 section) for some names of qualified Inspectors.

 

Site Survey - When buying single family homes, you will almost definatley be required to get a site survey of the property (Your mortgage lender will insist on this) You can also buy insurance which skips the Survey itself but instead provides insurance that limits your liability should there be a Survey related issue Insurance can cost upwards of $300, survey certificates can cost twice that or more.

 

Mortgage Insurance Fee - Talk to your Mortgage Broker about this. Generally speaking, if you are putting a 20% down payment or less on a property, you will need to pay for Mortgage Insurance. This mandtory insurance is at your cost but for the lender's benefit, not yours. Some rough costs can be found here.

 

Home Insurance - While technically an optional cost, it wouldn't be wise to view it as such. For a home you will need coverage and for a condo you'll want coverage over and above the insurance on the building itself that is provided through your monthly strata fees.

 

Lawyer/Notary for Conveyance - You will need a Lawyer or Notary that specializes in conveyance to assist you in transfering the title of the property into your name at closing. This can range from $600 to over $1000. Be sure to inquire as to whether or not the quote includes "dispursements" or not.