Costs to remember when preparing for your home’s closing.

Closing costs, which range from 1.5 to 4% of a property’s selling price, include the legal and administrative costs associated with your home purchase. In addition to closing costs, there are other expenses and/or events that may require a cash outlay before, on or after your house closes. We will outline these in detail to ensure these often-unexpected costs do not sneak up on you.

Cash outlays required before you close with your low mortgage rate:

• Home inspection fee
• Deposit

Costs financed in your Canadian mortgage rate:

• Mortgage default insurance (this protects the lender in the case the borrower, defaults on the loan)
  • Mandatory closing costs

Land Transfer Tax                  

• Legal fees and disbursements
• Title insurance
• Taxes on CMHC insurance

The following is a list of closing costs that are incurred by some homebuyers:

• Septic tank repairs
• Water test
• Estoppel certificate fee

Other costs to consider

• Property insurance
• Prepaid utility bills
• Property taxes

Closing Day

On closing date, the following events will take place:

• Your lender will provide the mortgage funds to your lawyer/notary.
• You will be required to give your down payment less the deposit, to your lawyer/notary along with the closing costs.
• Your lawyer/notary pays the previous owner, registers the home in your name, and gives you the deed and keys to your new home.