So, you've decided to buy a home! Congratulations!
The process of buying can be exciting and stressful at the same time. That's why you need a REALTOR® to help you wade through the paperwork and all the in's and out's...it's what we do!
Closing costs are always confusing to figure out and it is important to be fully aware of all the costs involved. Knowing in advance that you will need extra funds above your down payment will help you plan a less stressful experience!
First, a lawyer will charge a fee for their professional service to draft the title, prepare the mortgage and do various searches.
You will also have disbursements, such as, searches, registrations, supplies etc. This can range anywhere from $700-$1200 so make sure you call to find out what the fees will be!
Unless you are a first time buyer in Ontario, you will also have to pay Land Transfer Tax on closing when the home is transferred to your name.
Insurance. You will need to budget for mortgage insurance, home insurance and title insurance.
There will also be adjustments for utilities and property taxes if the Seller has prepaid.