Closing DayClosing day is the day you become the official owner of your home.
Typically, you visit your lawyer's office to review and sign documents relating to the mortgage, the property you are buying, the ownership of the property, and the conditions of the purchase. Your lawyer will also ask you to bring a certified cheque to cover the closing costs and any other outstanding costs.
Once the mortgage and the deed for the property are officially recorded, you become the official owner of the property and your lawyer will call you to pick up the keys to your new home.
CostsWhen you buy a home, you will be asked for a down payment, usually between 5 and 25% of the total price of the property. You might also have a number of other fees and expenses to pay.
Some of the most common expenses are listed below. These expenses may vary, depending on your area:
If your down payment is less than 25% of the purchase price the mortgage must be insured, either by Canada Mortgage & Housing Corp. or another private insurer. Costs for this include a $235 Application Fee (this includes the appraisal) plus an Insurance Premium which depends on the Loan to Value percentage. For a 90% mortgage the fee is 2.5% of the loan and can be paid separately or added to the mortgage. For more details on CMHC Fees go to the CMHC web site http://www.cmhc-schl.gc.ca
At time of application
$175+
Survey (sometimes provided by the seller)
At time of application
$500+
House inspection (optional)
At time of application
$300-400
Legal fees
Closing
$500-1,500
Legal disbursements
Title search $60 (average)
Sheriff's certificate for liens $66
Registration of title $50
Registration of mortgage $50
Municipal tax certificate $15+
Municipal Zoning and Building report $25+
Health Unit septic search $15 (if required)
Gas compliance $15
Closing
appx.$220
Deed and/or mortgage registration
Closing
appx.$100
Land Transfer Taxes
Closing
see calc. below
Property tax adjustments
Closing
Calculated
Fuel adjustments
Closing
Calculated
Mortgage insurance
Closing or added to Mortgage
$235 for Application plus LTV(Loan-To-Value) Percentage
Title insurance To eliminate the survey
Closing
$250-300
Fire insurance
Before Closing
$300-400
GST (if not included in purchase price)
Closing
Calculated
Condo: Status Certificate (as a rule, Seller pays. But there are cases when Buyer pays).
Condition in Offer
#100
Additional Expences - After Closing
Change of all locks.
Moving and insurance.
Appliances.
Furniture, draperies, shower heads, faucets, sinks, etc.
Lawn mower, snowplow, etc.
Any urgent repaires and other unforeseen expenses.
Land Transfer TaxPurchasers add Land Transfer Taxes to their list of closing costs. Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, Land Transfer Taxes (or property purchase taxes) are a basic fact of life.
Land Transfer Taxes, levied on properties changing hands, are the responsibility of the purchaser.
Up to $55,000 X 0.5% of total property value From $55,000 to $250,000 X 1% of total property value From $250,000 to $400,000 X 1.5% of total property value From $400,000 up X 2% of total property value
A rule of thumbIt's wise to budget about 2% of the purchase price for "hidden costs": e.g. $2,000 for a property of $100,000. This does not include the cost of a survey, CMHC insurance and, of course your moving expenses.
Use this figure as a guide only. Prices are not guaranteed. Always check with your lawyer regarding actual closing costs, they change constantly (without notice).
