One-time fees really add up when purchasing a home. It’s important to review all the fees that you may have to pay prior to buying a house. In our experience, most of our clients’ closing fees are around 2-4% of the final sale price, so be sure to set aside a reserve of money for the closing day. We trade in the Greater Toronto Area, so depending on where you live, your closing costs will differ.
The Exhaustive List Of Potential Closing Costs For Every Home and Mortgage Type:
We give a large ballpark when it comes to closing costs (2-4%) because fees fluctuate depending on the specific home you buy, your price range, and the exact location of your home.
Fees Applicable To Every Sale
- Legal Fees and Title Insurance — $1100-2000
- Prepaid Property Taxes, which you have to credit back to the Seller — $2000+
- Prepaid Utilities, which you have to credit back to the Seller — $1000+
- Moving Costs — $1000+
- Home Inspection — $350-500
- Provincial Land Transfer Taxes (and Municipal Land Transfer Taxes if it’s in Toronto)
Additional Fees For Clients Who Put Down More Than 20% Downpayment
- Appraisal — $300+
Additional Fees For Clients Who Put Down Less Than 20% Downpayment
- Mortgage Default Insurance — between .06% to 6.5% of the Mortgage total.
- PST on Mortgage Default Insurance — 8% on the Mortgage Default Insurance Total
Additional Fees For Condos
- Status Certificate — $100
Additional Fees For Non-Resident International Investors
- Foreign buyers are buyers who do not have PR, a work visa, a student visa (and 2 years in an approved school), or Canadian citizenship. They are taxed an additional 15% on their purchase, however, the tax can be rebated within 4 years if you become a Permanent Resident. However, the tax rebate has to be claimed within 90 days of becoming eligible for the rebate.
Occasional Fees
- In rare cases, a property survey is required and will cost around $2000+
- If the property uses well water, you need a water test for $150
- If the property uses a septic system, you need to budget to have it pumped and inspected for $150
Altogether, most buyers will find their closing fees are around 2-4% of the purchase price. That figure excludes their downpayment. In preconstruction, usually closing fees are around 5.5%+ If you’re curious about the fees to buy a home in your desired neighborhood, send us a message and we will gladly calculate the fees for you.
