In order to budget properly for a home purchase, the purchasers should be aware of ALL charges that will be incurred on closing. All purchasers should call their lawyer early in the process to discuss a full budget tailored to each individual situation. The following charges may be incurred at closing:
- Legal Fees and all closing costs (disbursements) which include title searches, registration fees, execution searches, e-reg fees, HST etc.;
- Land Transfer Tax (Ontario Government Tax on the Transfer of Property);
- Property Tax adjustment between the Purchaser and Seller;
- PST on CMHC Mortgage Insurance (if applicable);
- Title Insurance Premium;
- Condo Fee adjustment (if applicable);
- Remaining Down Payment (Down Payment less deposit). For example if Purchaser is putting $25,000 down and have paid $2,000 as a deposit to the real estate agent, the Purchasers would bring in $23,000 plus all closing costs listed above;
- Builder costs added at closing (If purchasing a New Construction Property).
More questions about Real Estate Law our services.