Typical Closing Costs

Home Inspection

A home inspector will thoroughly inspect the property to identify any minor or major defects. Some inspectors will provide estimates on the cost of making repairs. A home inspection will usually cost approximately $400.

Property Appraisal

An appraisal is required to determine the market value of the property. A real estate appraisal will cost about $250.00. Most banks will require an appraisal of the property prior to granting a mortgage. In the case of CMHC and GE insured files, the application fee of $165 includes a market value appraisal.

House Insurance

Provides protection for your home in the case of theft, fire, water damage, earthquake, etc. Proof of insurance is usually required prior to, or at closing.

GST (Good and Services Tax)

This is always charged on newly constructed homes. And if your newly constructed home is less than $450,000 and you're intending to live in the property as your principal residence, you may qualify for a rebate. See GST and Real Estate for further details.

Property Transfer Tax

1% on the first $200,000 of the purchase price plus 2% on the remainder. First time buyers may be exempt from paying this tax. See Property Transfer Tax for further details.

Adjustment

The previous owner of the property may have paid for Property Taxes, heating oil and other expenses past the period of time they will be occupying the property. They may also be leaving liabilities such as outstanding taxes that will have to be paid prior to the new owners taking possession. The solicitor will prepare a statement of adjustments that accounts for these factors ensuring that the party utilizing them pays the cost. This is part of the property conveyance process conducted by the solicitor or notary.

Survey

An accurate Survey of the property is required by most lenders. This can usually be obtained from the seller's agent. If it is unavailable, you may need to cover the fee of $200 to $350. Title insurance can often be purchased instead of a survey. The cost is in the $200 to $300 range.

Legal Fees

Depending on the complexity of your transaction, legal fees can range from $700 to $1,000.

Moving Costs

The cost of moving your household contents to the new home and hooking up the telephone, cable, etc.