What are Closing Costs
First-time buyers often underestimate the closing costs fees and repeat buyers sometimes forget them.
Closing costs are the fees you pay at the closing of a real estate transaction and can range from 1.5-4% of the purchase price.
These fees include legal fees, appraisal, moving fees, home inspection and a few other.
Fees you pay at the closing
Appraisals estimate the value of your home and the cost is usually paid by the lender. However, the approximate cost would be $300-$500.
Accredited home inspectors will examine the property to ensure it is up to code and that everything functions properly. Approximately $200-$500.
Any expenses that the seller needs to be reimbursed for after the date of closing (maintenance fees, heat, etc.). Approximately $0-$10,000+
Real Estate Lawyers will submit your offer, take care of registration, and will submit final payment on close. Approximately $800-$2500.
PST on Mortgage Insurance
If Mortgage Insurance is required on your loan, then the PST of the premium will be due on the closing day. PST on Mortgage Default Insurance is only required in Ontario, Manitoba or Quebec.
Other expenses, fees or events
In addition to the closing costs mentioned above, there may be other expenses, fees or events that may require budgeting for when your house closes.
Land transfer tax is also payable on the closing date of your purchase and is usually based on the purchase price of the property. However, in some provinces, there is no land transfer fee.
Be sure to set the region in the Closing cost estimator for accurate results.