Closing Costs for Buyers

HST – For information on HST applicability see this page.

Property Transfer Tax – When a residence is purchased a Property Transfer Tax (PTT) is applied. The tax is calculated at 1% on the first $200,000 and 2% on the remainder. The First-Time Home Buyers’ Program offers a full exemption to the PTT if the fair market value of the residence is $475,000 or less. Homes valued between $475,000 and $500,000 ($475,000 threshold + $25,000 proportional exemption) will be charged a pro-rated PTT.  For more information please click here.

Prepaid property taxes or utility bills – You will have to reimburse the sellers for any prepaid property taxes or utilities. Your lawyer or notary will calculate this for you and advise you of the amount before the completion date.

Mortgage loan insurance and application fee – If you opt for a high-ratio mortgage (a mortgage where you pay less than a 20% down payment) you will have to buy mortgage loan insurance from CMHC or a private company. How Much Does CMHC Mortgage Loan Insurance Cost? . The insurance premium usually gets added to your mortgage.

Appraisal – Before your lender approves your mortgage, you may be required to have an appraisal done. Sometimes your lender covers this cost otherwise you are responsible for covering this cost.

Survey fee – Your lender may require an up-to-date survey of the property. If the seller did not provide you with one, you may have to pay to have one done.

Home Inspection fee – I recommend that you get a home inspection by a certified home inspector. Home inspection costs vary widely but start from around $250 for a condo.

Legal fees – Lawyers/Notaries fees for closing the sale vary according to the complexity of the deal but they will usually start from approximately $600.

Disbursements to Land Titles Office – These fees can vary but usually average approximately $300. Your lawyer/notary will arrange this payment on your behalf.

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