Closings Costs

There are closing costs involved when you purchase a home and they will vary from Buyer to Buyer. Below are typical costs Buyers should be aware of.

Mortgage loan insurance.
In most cases, the actual insurance fee is added to the amount borrowed, and only the PST is actually a closing cost.  So if you’re borrowing $350,000 and have a mortgage insurance cost of $4,000, the PST on that amount is a closing cost, in this case $320.

Appraisal fee.

Depending on the lender, the house you’re buying, and your credit history, you may or may not have to pay for the lender to appraise the property you need a mortgage for.  Lenders charge approximately $250 for new homes.  In many cases, this fee can be waived as well.

Home inspection cost.
Prices range from $250 – $400 roughly.

Legal fees.

You’ll need a real estate lawyer to process the transaction for you. Price range from $800 – $1,200.

Ontario and Toronto Land transfer taxes.
Read more about the Ontario and Toronto Land transfer taxes here:

Tarion Warranty.
About $600-$700 for a 7 year warranty on new developments only. No warranty costs required for re-sale homes.

If the seller paid an entire year of property taxes at the beginning of the year and you take over half way through, the lawyer would make an adjustment for you to pay the remaining year. Cost: varies.

Home insurance premiums will vary from one insurance company to another and according to your insurance needs. Approximate cost: $200 to $500 per year.

Development/Education Levies.
If buying a new development, the builders charge development/education levies that vary between each project – make sure to review the agreement of purchase and sale with your lawyer. The costs can range from $1,500 to $5,000. Be sure to request a “cap” on these fees so you can properly budget your closing costs.