A Brief Breakdown of Home Buying Closing Costs


A Brief Breakdown of Home Buying Closing Costs

Tags: Closing Costs, Home Buyer, First Time Homebuyers, Real Estate, Mortgage, Realtor, Toronto, Housing Market, Inflation,

This is usually 5-20% of the purchase price and is tiered as such:

$500K or less: 5% of the purchase price
$501K-$999K: 5% of $500K + 10% of the amount between $500K-$999K
$1M+: 5% of $500K + 10% of 500K + 20% of the amount over $1M

No less than 5% but can be higher. The deposit forms part of your downpayment and is paid upon acceptance of an offer.

Home Inspection
This isn't mandatory but usually costs anywhere between $300-$1000 depending on the size of the property and also on the expertise of the inspector.

Legal Fees
Hiring a real estate attorney to transfer title will cost a minimum of $1500. This usually depends on the size and the price of the property purchased.

Land Transfer Tax
Land transfer tax in Ontario follows a tiered breakdown as such:

0.5% on the first $55,000
1.0% on the amount between $55,000 and $250,000
1.5% on the amount exceeding $250,000
2.0% on the amount exceeding $400,000

In addition to the provincial land transfer tax, certain municipalities in Ontario may also impose a municipal land transfer tax. Toronto, for example, has its own municipal land transfer tax in addition to the provincial tax. Be sure to consider both taxes when calculating your total land transfer tax obligation.

Provincial Sales Tax on New Homes
13% HST on the purchase price minus any rebates.

Mortgage Insurance
Not always applicable but will be incorporated into your mortgage.

Moving Costs
Upwards of $5,000.

Please verify this information with the latest sources or consult a qualified professional as tax rates and regulations may have changed since this update.