| According to CMHC and GE Capital, one should
have, in addition to the down payment, at least 1.25% of the
purchase price for closing costs (we say 2-2.5%, just to be
on the safe side). |
Appraisal
Fee:
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The appraisal provides the lenders with a professional
opinion of the market value of the property. This cost is normally
the borrower's responsibility and it ranges as low as $100 for
a drive-by appraisal to as much as $200 for a full appraisal,
and the average being $175, plus G.S.T. |
|
Home Inspection
Fee
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A professional inspection of the home, top to bottom, is for
the benefit of the buyer, therefore, that's who absorbs the
cost. A typical home inspection can cost anywhere from $250-$350 |
Fire
Insurance
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All mortgage lenders will require a certificate of fire insurance
to be in place from the time you take possession of the home.
The amount required is generally at least the amount of the
mortgage or the replacement cost of the home. This cost can
vary on the property size and extras being insured, as well
as the insurance company and the municipality. The cost can
vary based on your property |
Land
Survey Fee Or Title Insurance Fee
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A recent Survey of the property is usually required by the
lender, and if one is not available, it normally costs anywhere
from $600-$900 for a new survey. In lieu of the Survey, most
lenders today will accept Title Insurance, at a much lower price
of approximately $225. |
Legal
Costs and Disbursements
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A lawyer or notary will charge a fee for their professional
services involved in drafting the title deed, preparing the
mortgage, and conducting the various searches. The disbursements,
on the other hand, are out-of-pocket expenses incurred, such
as registrations, searches, supplies, etc., plus G.S.T. |
Land
Transfer Tax
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Most provinces charge a land transfer tax, payable by the
purchaser, and the amount varies from province to province.
This tax is based on the purchase price . Calculate
here |
Mortgage
Application and Processing Fee
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On a high-ratio insured mortgage (mortgages above 75% of the
purchase price), the mortgage insurer (CMHC or GE Capital) charges
a fee of $165-$185 for applying and processing the file, as
well as appraising the property. On new homes, this fee drops
to $75. |
Closing
Adjustments
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An estimate should be made for closing adjustments for bills
that the seller has prepaid such as property taxes, utility
bills, and other charges. Any bills after the closing date are
the purchaser's responsibility. Your lawyer/notary will let
you know what they are exactly once the various searches have
been completed.Any bills/ amounts including the closing date
are the purchaser's responsibility |
G.S.T.
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On the purchase of a newly constructed home, GST is payable,
but make sure you know who pays this, you or the builder. Therefore,
on the offer, the purchase price will say "Plus GST"
or "GST Included", and who gets the GST new home rebate.
A lot of builders have included this cost into the purchase
price so that the buyer does not have to come up with that at
closing. (As well, this tax is also charged on all professional
fees). |
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