I get a lot of questions about what to expect as far as closing costs for a purchase in Ontario – here is a brief rundown of what to expect, though this list is not necessarily exhaustive. Ask your real estate agent or lawyer if there are any fees that may differ from a normal transaction.
Typical closing costs of a real estate transaction in Ontario:
• Ontario land transfer tax – depending on the purchase price that tax is calculated: 0.5% on the first $55,000, 1% on the portion between $55,000 and $250,000, 1.5% on the portion between $250,000 and $400,000, and 2% on the remaining portion.
• If you are a first time buyer, meaning you have never owned any property in the world, you can get a credit for portions of Toronto and Ontario land transfer tax. For Ontario land transfer tax the first time buyer gets a credit of up to $4,000 as of 2017.
• Legal fees – The fees for your lawyer’s own services, which may also include a component for out-of-pocket expenses or disbursements such as photocopying or reviewing condo documents.
• Property tax adjustments – A portion of the year’s property taxes which are credited to the Seller if the Seller has already paid them, or credited to the Buyer if the Buyer will be required to pay them. There may also be adjustments for any prepaid utilities.
• Home insurance – You will have to obtain home insurance & provide evidence to your lender before the mortgage company releases your funds to the lawyers for closing.
• Opening of utilities accounts, phone, cable – some require deposits, ask carefully what will be required.
• Appraisal fees – these are charged by lenders, ask them if there will be one.
• Home inspection fee (if inspection is done): Usually $350-$400 for a standard home in Oxford County
• Title insurance – approximately $250 plus HST, ask your lawyer what your cost will be.
• Title registration fee – Transfer registration fees at the Land Titles Office. The Land Titles Office charges fees to register documents transferring ownership of property from one person to another.
• Mortgage registration fee – An additional fee is charged for registering mortgage documents. Ask your mortgage broker for further details.
• Moving costs – if you hire a van/truck, professional movers – costs will vary.