What Will I have to Pay When Closing a Real Estate Transaction
Many of my clients are surprised when they find out just how many additional closing costs there are when purchasing a home. It’s important to plan ahead and budget for these costs prior to signing the Agreement of Purchase and Sale.
According to the Canadian Mortgage and Housing Corporation, closing costs range from 1.5-4% of the selling price of your home. This includes the legal and administrative costs you will need to pay when your house closes.
In addition to the agreed upon purchase price, there are additional legal and administrative costs that will have to be paid on the closing of your real estate transaction.
The following is a list of closing costs that are may be incurred when purchasing real estate in Ontario:
- Title Insurance – While it is optional, today, many lenders require title insurance to protect against losses in the event of an ownership dispute. This is purchased through your lawyer, and costs approximately $150-325 for homes up to $500,000.
- Land Transfer Tax – This is calculated as a percentage of the purchase price of your home, and is payable on closing. If your property is located in Toronto, Ontario, there is an additional municipal land transfer tax.
- Adjustments – You will be required to reimburse the seller of the property for any pre-paid property taxes or utility bills.
- Home Insurance – For the protection of your home and contents.
- Legal Fees and Disbursements – At Frost Law, we provide a flat fee (legal fees and disbursements) to prepare the legal documentation, with no hidden fees. This way, you know exactly to expect. Click Here to obtain a quote, or call us at (905) 224-2077 for a free initial consultation.
Contact your local real estate legal professional at Frost Law, Professional Corporation to discuss what closing costs you can expect for you real estate transaction.