Buyer's closing costs

Budgeting for your new home is essential.


There are several additional costs that accure during the Home Buying Process on top of the purchase price of the property. Planning ahead for all expenses ensures your budget stays on track and any unforeseen financial stressors are minimized. Below is sequential list of the fees one can expect when purchasing a new home.

1. HOME INSPECTION
  • prices range from apprx $400 (condo) to $800 (house)
  • prices vary depending on the company and the equipment used
2. BANK APPRAISAL
  • apprx $300-$450 plus GST
  • usually this is covered by the lender providing the mortgage
3. DEPOSIT
  • usually 5% or more of purchase price
  • to be paid upont subject removal by way of certified cheque or bank draft

Closing costs applicable at the end of the home buying process:

1. LAWYER/NOTARY
  • apprx $800-$1000
  • to transfer the Title of the property and register your mortgage
2. PROPERTY TRANSFER TAX (PTT)
  • 1% on the first $200,000 and 2% on the balance of the purchase price, and 3% on the amounts over $3 million
  • tax to te government when land transfers hands
  • First Time Home Buyers purchasing under $475,000 can be exempt if all requirements are met
3. PROPERTY TAX
  • you will be rsponsible for a per diem amount based on your Completion date
  • this will be adjusted at the meeting with your lawyer
4. MORTGAGE INSURANCE (high ratio insurance premuim)
  • varied amounts based on your lender
  • applicable when putting less than 20% down of the purchase price
  • can be paid upfront or incorporated into the mortgage, speak with your mortgage specialist
5. GST
  • 5% of a purchase price
  • applicable on new construction products or substantially renovated projects
6. SURVEY CERTIFICATE
  • apprx $500 plus GST
  • to define the lot lines of the property and its structures

Additional costs to budget for once you are moved into your new home:

  • Property Taxes - due annually
  • Property and Content insurance - due annually
  • Strata Fees (condo or townhouse) - due monthly
  • Maintenance and repairs - annually and ongoing
  • Hydro and natural gas bills - if applicable
  • Internet and cable - if applicable