Closing Costs are the collection of charges, fees and services that need to be paid for in order to get a property deal done. Often mistaken for Legal Fees, Closing Costs include many other things as well as the money yor Lawyer makes for his or her services;
- Inspection Fees - Appraisals, Home Inspections and Well Tests are common kinds of Inspection Fees.
- Registration and Taxation - Mortgages and Deeds are Registered with the Provincial Government and they charge for this, Land Transfer taxes, Property taxes and GST on new Construction are typical taxes applied to Real Estate deals.
- Insurance - you need to have Fire Insurance in place before a Lender will release funds
- Misc Charges - Surveys, Heating Oil, Legal fees and disbursements can add up to substantial amounts
Lenders will want you to prove that you have 1.5% of your purchase price in order to cover Closing Costs however this can be a little or a lot, practically speaking you will want to have up to $3,500 for your first home and up to $4,500 if you are buying a second home.
A good Real Estate Agent or Mortgage Broker will help you plan for and anticipate the impact of your Closing Costs.