Closing Costs

What Costs are Involved?

CMHC/Genworth Insurances If your mortgage is more than 80% of your purchase price or appraised value (whichever is lesser), you can expect to pay for mortgage insurance. The premium which will typically range from .5% to 3.70% of the mortgage amount. This premium can be, and usually is, added to your mortgage. Appraisal/Inspection Fees If you want a conventional mortgage (under 80% of purchase price), you should expect to pay for an appraisal -- usually $250 plus GST. Let your Mortgage Counsellor order your appraisal. Most lenders only allow fully accredited and approved professionals to do their property valuations. Some buyers prefer the additional security of a condition inspection by a Registered home Inspection professional. Average cost for a home inspection is $280 - $400 Survey Certificate or Title Insurance Most lenders will require a certificate of land survey showing that the house you are buying is properly and legally located on the lot. Here's what you can do to prepare yourself for this: Ask your Realtor or the Vendor to provide you with a copy of the Survey Certificate in their possession. - No Cost If the previous owner of the property cannot provide you with his last Survey Certificate you may have to obtain a new one for yourself, the cost of which could vary depending on location - Cost $300 and up. Alternatively this cost could be mitigated somewhat by instructing your lawyer to purchase title insurance - Cost $200. Property Insurance You will have to insure your new home against loss by fire, third party liability and possibly other hazards for your lenders' purposes and for your own comfort and protection. Your Insurance Broker can provide these costs for you Adjustments Taxes, utilities, and/or strata fees (if applicable) may have been paid in advance by the seller of the property and you will have to reimburse the seller for your share of these costs. Make sure you understand how these adjustments work to avoid any unexpected surprises. Your Mortgage Counsellor or lawyer can show you what to expect Property Purchase Tax and GST While there may be an exemption for First Time Buyers, property purchase tax can be calculated as 1% of the first $200,000 and 2% of any amount over this - up to a maximum for your area. First time buyers financing over 70% of their purchase should qualify for an exemption from this tax. Have your lawyer explain the best way to take advantage of this exemption and how to avoid having to repay it. Legal Fees Finally, you will almost always require the services of a lawyer or notary to ensure that you obtain good title to your home free from unexpected charges or encumbrances. A lawyer or notary will usually offer a free, confidential, initial consultation and fee estimate on any legal matter. If you have any questions, please feel free to call me anytime.
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