Predicted Closing Costs

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 For The Seller

The following are typical costs incurred by the Seller at the time of closing.

Legal Fees

Sellers require the services of an Ontario lawyer who will charge for services to prepare all legal instruments which help to transfer title of ownership from the seller to the buyer. This can amount to ½ to 1% of the sale price of the property. We have lawyers to recommend or you can shop around if you do not have a lawyer who specializes in Real Estate.

Real Estate Commission

Commission is a percentage of the sale price and built into the transaction.

H.S.T.

Almost all services involved with the sale of a property are subject to 13% HST including the real estate commission, legal fees, appraisals, home inspections, processing fees, insurance, moving, etc. HST is also applied to transaction of substantially renovated homes, new housing, vacant land and commercial properties.

Discharge of Mortgage

There may or may not be a penalty. Please check with your lending institution.

The Move

Moving expenses can vary greatly depending on the scope of help you need and the method you choose (i.e. renting your own truck, packing yourself, having professional movers do the whole move, etc.). We can recommend movers and packers if necessary.

 For The Buyer

The following are typical costs incurred by the Buyer at the time of closing.

Deposit

Buyers typically submit a certified deposit cheque when they make an offer. This usually amounts to between 5% and 10% of purchase price. The cheque is usually held in trust by the listing broker and deposited the day after acceptance.

Legal Fees

Buyers require the services of an Ontario lawyer who will charge for services including title searching, plus disbursements. Legal fees can be approximately ½ to 1% of the sale price of the property. We can recommend three lawyers to help you or you can shop around if you do not have a lawyer who specializes in Real Estate.

Disbursements

These are fees paid by your lawyer to obtain City Tax Certificate, City Zoning Reports, City Engineering Report, Sheriff’s Certificate, Registry Office searches, registering deed, registering mortgage, copies, postage, long distance calls, title insurance, etc.

Land Transfer Taxes: Provincial and Municipal

The formula for calculating Ontario is: The formula for calculating Toronto is:
0.5% on the first $55,000 0.5% on the first $55,000
Plus 1% of the amount from $55,001 to $250,000 Plus 1% of the amount from $55,001 to $400,000
Plus 1.5% of the amount in excess of $250,001 to $400,000 Plus 2% of the amount in excess of $400,000
Plus 2% of the amount in excess of $400,000

Survey

Mortgage lenders often require an up to date survey. If no recent survey is available, a new one by an Ontario Land Surveyor will cost approximately $1,000 – $1,500. Fees for larger and recreational properties will vary and could exceed average prices.

Statement of Adjustments

On closing day, there is a statement of adjustments to determine the final amount owing to close the sale, the amount representing the purchase price minus the deposit. It will also include monies owing or owed for items such as pre-payment of taxes, fuel, utilities, etc. If the home is a new construction transaction, these adjustments may also include the Ontario New Home Warranty Fee, etc.

Arranging the Mortgage

To set up home financing, there is usually an appraisal fee of about $200.00 plus an administrative loan processing fee of about $300. A new survey may also be necessary.

Home Insurance

There is a wide range of options and prices, but most policies start at $500 per year. Buyers should be aware of insurance concerns such as: knob and tube wiring, hydro service, oil tanks, and other risky issues.

The Move

Moving expenses can vary greatly depending on the scope of help you need and the method you choose (i.e. renting your own truck, packing yourself, having professional movers do the whole move, etc.). We can recommend movers and packers if necessary.