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The total cost of buying a home involves not only the purchase price of the property, but also other closing costs. These
additional expenses, incurred by the Buyer, are necessary to complete the purchase. Closing costs
are typically 2-3% of the price of a resale home — excluding mortgage insurance fees.
The CMHC (Canada Mortgage & Housing Corporation) has an excellent home purchase/closing costs CALCULATOR on their website. Click here to try it out.
| Examples of home-buying expenses for resale homes |
Closing cost is paid: |
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| Mortgage application Fee |
At time of application |
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| Property appraisal fee |
At closing |
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| Property tax hold back |
At closing |
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| Home inspection |
Upon offer acceptance |
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| Legal fees and Title insurance |
At closing |
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| Legal disbursements |
At closing |
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| Deed and/or mortgage registration |
At closing |
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| Property Survey (sometimes provided by seller) |
At closing |
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| Land transfer taxes |
At closing |
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| Mortgage interest adjustment and take-over fee (if applicable) |
At closing |
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| Adjustments for utilities, taxes, etc. |
At closing |
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| Home insurance |
At closing and on-going |
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| Connection charges for utilities |
At date of move |
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| Moving expenses |
At date of move |
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plus:
Mortgage insurance fee (0.5%-6.0% of home price for high ratio mortgages i.e.; loan of more than 80%) — add another
8% PST to mortgage insurance premium.
See CMHC website for more information on Mortgage Loan Insurance |
At closing (mortgage insurance premium can be added to mortgage) |
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Other costs may include furnishings, appliances and repairs, if any.
Additional Expenses if buying a new home from a builder:
GST on purchase price, if not included (rebate could go to the builder and is often reduced from the home
price), condominium reserve fund (condos only), water and hydro meter charges, paving holdback, landscaping and tree planting,
Tarion warranty registration, school levy, damage deposit for condominiums (condos only) and upgrades from builder standard
finishes. Closing costs for a new home can be as much as twice the amount spent purchasing a re-sale property.
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