Closing Costs
Closing Costs Average:
1.5% of the purchase price which would include the following,
Legal Fees & Disbursements: $900 +/-
Legal Fees will vary between lawyers and depending on the price of the home and complexity of the purchase. Fees are what the lawyer's charge for their time and experience. Disbursements are what the lawyer pays for costs and expenses. These include land title office fees, courier costs, and long distance charges among others.
Home Inspection Fee: $375-450 + GST (if required)
Your home can be inspected by a qualified, independent Home Inspector to advise you of his opinion of the condition of the home. 1300+ items in your home can be checked.
Real Property Report: $400+
Formerly known as a Survey Certificate, a Real Property Report shows exactly where your house is located on the lot, any encroachments, and that it complies with the Municipal Bylaws. An R.P.R. within 10 years old will be accepted by most Financial Institutions.
Title Insurance: $200+
If an R.P.R. is not available, title insurance can be purchased.
Tax Adjustments: $1000+/-
The tax adjustment is a combinations of reimbursement to the seller for tax he/she has already paid and/or monies owing to the tax account on your mortgage. This will depend if your mortgage company requires taxes to be included in your payment. The tax adjustment will always be 7/12 of the annual taxes if your taxes are included in your mortgage payment.
Interest Adjustment:
If the possession date is other than the 1st of the month, an interest adjustment will be paid to the bank from possession date to the 1st day of the following month. The lender will disclose this amount to you. This is interest only.
CMHC, Genworth or AIG Mortgage Loan Insurance Premium:
If you have a high ratio mortgage (less than 20% down), the lender will require mortgage loan insurance provided by CMHC, Genworth or AIG Insurance. This insurance will cost from 0.5% - 7.65% depending on the down payment amount and the required type of mortgage. This insurance premium can be added to your mortgage amount.
Appraisal Fee $350+ for conventional mortgages:
Anytime there is no CMHC, Genworth or AIG Insurance on a mortgage an appraisal is usually required. An Appraisal confirms that the property being mortgaged is valued at the price it is being sold for.
*ALL ABOVE FIGURES ARE APPROXIMATE
