What are Closing Costs?

Closing costs are additional fees when buying a home besides the purchase price and any borrowing costs.  They generally average between 1.5% to 4% of the home's selling price.  Amounts and percentages mentioned below are for illustrative purposes only.  For further information, consult your legal advisor and your real estate agent.

Provincial property/land transfer and registration taxes  (Most provinces levy a tax on a home purchase that must be paid at time of registration.)  The cost is based on a percentage of the purchase price (.5% to 2%) and varies from province to province.

Legal/notary fees  (Professional representation protects your interests in the purchase of a property.  Fees and disbursements may vary based on a transation's complexity.)  Check with your lawyer or notary for current rates.

Mortgage insurance  (Any home purchase where the down payment is between 5% and 19% is considered a high-ratio mortgage and must be insured to protect the lender in case of default by the borrower.)  The fee depends on the amount you are borrowing and the percentage of your down payment.  Typically ranges from 1% to 3.25% of the principal amount of the mortgage.

Property insurance  (Mortgage lenders require you to have property insurance in place when you take possession of your new home.  Make sure you enlist an insurance agent early.)  The fee varies based on the value of the property, location, and contents of the home.

Home inspection  (A home's clean bill of health from a qualified home inspector can provide a great deal of comfort when buying a resale home.)  $200.00 to $500.00

Moving costs  (Costs depend on what you can do yourself and the distance involved.  Prices may be higher at the end of the month or in the summer.)  Variable, per hour and per kilometer.

Service hook-ups  (Initial hook-up charges may apply and are determined by the utility service provider.  Check with your local service providers.)  $100.00 to $500.00

There are no comments

Thank you! Your comment has been submitted and is awaiting approval.

Diane Walker

Diane Walker

Broker
CENTURY 21 Today Realty Ltd., Brokerage*
Contact Me

Tags