Closing Costs

Many of us have been advised to make sure we have enough left in the bank for “closing costs.” The best way to do this is to be knowledgeable about what they are.

tAXES

GST and Property Transfer Tax

Government Sales Tax: This is applicable on new homes. It is calculated at 5% of the purchase price (rebates may be available, please ask for more details).

Property Transfer Tax:

The general property transfer tax applies for all taxable transactions. The general property transfer tax rate is:

• 1% of the fair market value up to and including $200,000

• 2% of the fair market value greater than $200,000 and up to and including $2,000,000

• 3% of the fair market value greater than $2,000,000

LEGAL FEES

Disbursements and Conveyancing

Conveyancing & Disbursements: Budget approximately $1,700 to facilitate the exchange of money for ownership. This cost is also to have the title of the property registered under your name.

Home Buying Costs

Home Inspections, Move-in Fees, Deposits, and Down Payments

Home Inspection: A price tag of under $450 - $600 (depending on the size of the home) can ensure peace of mind for years to come.

Strata Move-in Fee: Strata’s require between $200 - $300 for move-in fees.

Deposit: Typically between 5% - 10% of the purchase price and included as part of the Down Payment. This money (paid via bank draft) is most commonly delivered to a trust account of the buying agent's brokerage within 24 hours of subject removal.

Down Payment: The initial payment to purchase a home, typically ranging from 5%-35% depending on the purchase intention. If your down payment is less than 20%, you may require mortgage insurance, please ask for additional information.

Bills

Owning a home is a rewarding experience. Be informed of all that is involved to avoid surprises.

Heat/Gas/Hydro: Varies by city - sometimes included in strata fees. Hydro bills usually range between $40/month - $100/month, depending on the size of the home.

Cable/Internet: Select the right plan for your lifestyle. Many new buildings will offer free cable and Internet for up to one year. Typically cable/internet bills are between $40/month - $120/month.

Property/Personal Belongings Insurance: Insurance is mandatory for all homes. Be sure to have the right type of insurance for your property. A standard condo insurance plan will cost $700/year, while a detached house will cost closer to $2,500/year.

Strata Fees: Applicable for condos and townhouses. Strata fees usually range from $0.25- $0.65 cents/square foot. There are many factors that determine strata fees, not just whether a building has lots of amenities.

Special Levies: Special levies are larger sums of money that are required from owners to conduct repair and maintenance work on buildings periodically. Special levies and home repairs are inevitable in both detached houses and condominiums. It is always important to set aside some money to avoid the shock and disruption a special levy may cause.