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3. Buying Closing Costs

Whether buying your first home, or trading up to a larger one, there are costs on top of the purchase price that you must figure into your calculation of affordability. Some of these costs are one-time fixed payments, others are an ongoing monthly or yearly commitment. Not all of these costs will apply in every situation, however, it’s better to know about them ahead of time so you can budget properly.


Appraisal Fee

Your mortgage lender may request a property appraisal which would cost you approximately $175-$300.


Property Taxes

Depending on your down payment, your lending institution may decide to include your property taxes in your monthly mortgage payments. If the property taxes are not added to your monthly payments, your lender may require annual proof that your taxes have been paid.


Property Survey Fee

When you purchase a resale home, your lender may ask for an updated survey costing from $700-$1,000.


Property Insurance

Home insurance covers the replacement value of your home (structure and contents). Your lending institution will request proof that you are insured to protect their investment on the loan.


Service Charges

Any new utility services, such as telephone or cable, may charge an installation fee to do the hookup.


Legal Fees

Even the simplest of home purchases should have a lawyer involved to review all paperwork. The rates vary greatly depending on the complexity of the issues and the experience of the lawyer.


Mortgage Loan Insurance Fee

Mortgage loan insurance is required if you put down less than 20% of the purchase price. This insurance costs from 0.5%-3.5% of the mortgage amount. Usually payments are made monthly in addition to your mortgage and tax payment.


Moving Costs

A professional mover can cost in the range of $50-$100/hour for a van and 3 movers, 10-20% higher during peak demand seasons.


Maintenance Fees

Condos charge monthly fees for common area maintenance such as grounds keeping and hallway carpet cleaning. Costs will vary depending on the building.


Land Transfer Tax

This tax is applied whenever property changes hands. Total Land Transfer Tax in Ontario, outside of Toronto, is 0.5% of 1st $55,000 of purchase price, plus 1% of amount from $55,000 to $250,000, plus 1.5% of amount from $250,000 to $400,000, plus 2% of amount over $400,000.