First-Time Buyer Closing Costs

When your planning to purchase a home one of the biggest stressors are the closing costs. I am a big believer in 'knowledge is power', so lets break it down so you can know what to expect and budget accordingly!

Closing Costs BEFORE closing:

Deposit: Usually 5% of your purchase price due 24 hours after your offer is accepted.

Home Inspection: $400-$700 paid at the time of inspection.

Property Appraisal: $500 Approx. sometimes paid for by your lender.

Closing Costs ON Closing:

Balance of the Purchase Price: Purchase Price-Deposit= Balance Due On Closing (Typically the bulk will come from your lender and become your mortgage)

Legal Fees: Approx. $1,800 *Amount varies based on purchase price

*Note, these fees are cash on closing, and can NOT be added to your mortgage.

Title Insurance: $400 Approx. Sometimes added into your legal fees.

*This is a MUST on all residential transactions.

Property Survey: Approx. $2,500 (Not always necessary)

Ontario Land Transfer Tax: Varies depending on purchase price.

*See the land transfer tax calculators online for reference.

*First-Time Buyers can redeem $4,000 towards this cost.

Toronto land Transfer Tax: Varies depending on purchase price.

Property Tax Adjustment: Reimbursement to the Seller for prepaid property taxes, due on closing.

HST: Applicable on new construction condos and homes.

Tarion Warranty Fees: Applicable on new construction condos and homes only.

CMHC Insurance Premium: Insurance premium for homes purchased with less than 20% down, can be paid on closing or added to your mortgage.

Closing Costs AFTER Closing:

Moving Expenses: $1,000+

Utility Connection Charges: Varies.

Redecorating/Renovating.

Immediate Repair and Maintenance.

*First-Time Buyers can typically estimate to pay between 1.5% and 4% of the purchase price of a home for closing costs. Its important to factor these costs into your budget when considering a home purchase.

Example: A home that costs $700,000 at a 4% estimate, will have approx. $28,000 in closing costs.