Home Buyer Closing Costs in Ontario
Costs when buying home involve one-time costs and not to mention monthly expenses. There is also something called home buyer closing costs in Ontario. The largest one-time cost is definitely the down payment. It usually represents between 5-25% of the total price of the property. Typically closing costs can be around 2 % of the purchase price. I will try to list out all the home buyer closing cost below but if you have any questions please feel free to contact me and I will explain these in detail.
Down Payment
5% or more, in some cases a 10% minimum down payment is required depending on the Buyers employment, income and credit history. If you put down 20% you will then avoids the Mortgage Insurance Fee, commonly known as a CMHC Fee.
Other additional costs to consider:
| Processing a Mortgage | Apprasial & Application Fee $350 to $500 approx. For lender purposes & CMHC insurance. |
| Mortgages Life Insurance | This is usually optional, I also have a blog on Life Insurance vs Mortgage Insurance. |
| Buyer Incentives |
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| Home Inspection | $400.00-800.00 (approx). Highly recommended for both resale and new construction. |
| Legal Fees Disbursements |
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| Statement of Adjustments | Given to the Buyer upon Closing This is a summary of all costs and expenses paid by the Buyer(s) and will be provided to the Buyer(s) upon closing. |
| Land Transfer Tax | Applies to all transfers of land in Ontario. First-time homebuyers may be eligible for a refund of all or part of the tax. For transfers where:
One can apply for a refund within 18 months after the date of the transfer. |
| Survey | NOTE: A survey is not transferable and belongs to the individual who paid for the survey. You cannot rely on the accuracy of the information unless you ordered and paid for the survey. One can use copies of survey’s received from Sellers, only for re-finance purposes. |
| Title Insurance | $280 to $600(approx). If there is no Survey, title insurance will satisfy the Lender and you will not have to incur the cost of a new survey. Title insurance is a must on all Real Property Purchases. |
Summary
Closing Costs when buying home quoted here are approximate. Your lawyer will give you exact costs. Please feel free to ask me any questions you may have since closing cost is an essential part of a real estate transaction that every buyer needs to be aware.
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I did not know that there was a thing called as a home buyer closing costs as no one had told me before. I think it would have been a better idea to hire a realtor to do the dealings for me.