Transaction Closing Costs


When purchasing a home, you will incur some costs that are associated with such transaction. Usually these costs will include:

  • Land transfer tax - depending on the purchase price that tax varies between 0.5% on the first $55,000, 1% on the portion between $55,000 and $250,000, 1.5% on the portion between $250,000 and $400,000, and 2% on the remaining portion.
  • Legal fees - The fees for your lawyer's own services, which may also include a component for out-of-pocket expenses or disbursements.
  • Property tax adjustments - A portion of the year's property taxes which are credited to the Seller if the Seller has already paid them, or credited to the Buyer if the Buyer will be required to pay them. If you're obtaining a new mortgage, the mortgage company may wish to hold back future taxes as well.
  • Home insurance - You will have to obtain a home insurance before the mortgage company releases your mortgage.
  • Opening of utilities accounts, phone, cable
  • GST - Goods and Services Tax (GST). There is a GST cost to the Buyer on the purchase of most new housing, although the Buyer will get a partial rebate if the purchase price is less than $450,000. There is a clause in the offer stating that the GST, if applicable, shall be included in the purchase price, however, this clause is not used in the new home contracts. There is also GST payable on your lawyer's fees and disbursements and surveyor's charges.
  • Appraisal fees - these are charged by the mortgage companies, but it is possible for a qualified buyer to have them waived.
  • Home inspection fee (if inspection is arranged)
  • Title insurance - approximately $270 plus GST
  • Title registration fee - Transfer registration fees at the Land Titles Office. The Land Titles Office charges fees to register documents transferring ownership of property from one person to another.
  • Mortgage registration fee - An additional fee is charged for registering mortgage documents.
  • Moving company fee - when obtaining quotes from the movers it is wise to ask for references and insurance coverage. If the movers are careless, and damage your possessions, it may not be worth the apparent savings.

You should always discuss the fees with your attorney.