Items marked by an asterisk (*) are usually included along with the balance of your downpayment in the cheque you give your lawyer a week or two before closing. Your lawyer will give you a detailed estimate of the amount required.
HOME INSPECTION:
typically $250 to $375 plus 7% GST
LOAN APPLICATION FEE:
variable, depending on your financial institution
MORTGAGE INSURANCE:
(usually required if the mortgage exceeds 75% of the appraised value of the property) up-front CMHC application fee of $75 (with appraisal) or $235 (without appraisal) and a premium of up to 3.75% of the total loan, plus 8% PST, which may be paid on closing or added to the mortgage
APPRAISAL:
typically $180 to $250 plus 7% GST, depending on your financial institution (many lenders offer to waive this fee as an incentive to borrow from them)
SURVEY:
about $1,000 plus 7% GST for a conventional urban property, although nowadays Title Insurance at a cost of around $200 to $300 is an option
LEGAL*:
$600 plus 7% GST for lawyer's fees, plus up to $700 for legal disbursements for a straight-forward transaction (this includes the cost of title searches registering your deed and mortgage - your lawyer can provide a more accurate and detailed estimate)
LAND TRANSFER TAX*:
- $5 per $1,000 on the first $55,000,
- plus $10 per $1,000 from $55,000 to $250,000,
- plus $15 per $1,000 over $250,000,
- plus $5 per $1,000 surcharge on single homes and duplexes for any amount over $400,000
variable and at your discretion, but don't forget to plan for them
HOME INSURANCE:
$400 typically, for an urban location
UTILITY DEPOSITS:
variable, and usually not required if you have an established credit record with the utility (check with the utilities when you are arranging for service)
MORTGAGE INTEREST*:
Financial institutions typically set the first date of your mortgage term (Interest Adjustment Date or IAD) at the beginning of the month after you purchase the property (or at the start of the following month if you buy near the end of the month). Interest for the period between the date of closing and the IAD may be charged directly to you by your lender, in which case it will likely be drawn from your account around IAD. In some cases this interest is deducted from the amount advanced to your lawyer in order to close, in which case your lawyer will ask you for the amount with the balance of your downpayment. The Mortgage Commitment you receive from your lender will set out the Interest Adjustment Date. If your financial institution will also be collecting and paying municipal taxes on your behalf, it will require prepayment of a portion of the annual tax bill either at closing or over the first year of the mortgage. Ask your financial institution how it handles pre-IAD interest and municipal taxes when you are arranging your financing, to avoid unexpected surprises.
CLOSING ADJUSTMENTS*:
Closing adjustments are intended to ensure that both vendor and purchaser pay their fair share to or from the closing date for such costs as municipal taxes or fuel oil. They are variable based on such factors as when closing occurs, the amount and payment date of municipal taxes and the size of the oil tank. If you are assuming an existing mortgage, there will also be an adjustment for mortgage interest.
These estimates are guidelines only and are not warranted. Actual costs will vary based on the specific circumstances of the transaction. Consult your lawyer and lender for actual costs.