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
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
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.