What closing costs can I expect?

What Are Closing Costs?

Closing costs encompass the various legal and administrative fees payable upon the finalization of a property purchase. In Ontario, these costs typically range from 1.5% to 4% of the property's purchase price. 

Breakdown of Common Closing Costs in Ontario

1. Land Transfer Tax (LTT):

   • What It Is: A provincial tax levied on property purchases.
   • Cost: Calculated based on the property's value, with rates increasing progressively. For example, a $500,000 home would incur an LTT of approximately $6,475.
   • Note: First-time homebuyers may be eligible for rebates, reducing or eliminating this expense.
     
     

2. Legal Fees:

   • What It Is: Fees charged by a real estate lawyer for handling documentation, title searches, and registration.
   • Cost: Typically ranges from $1,100 to $1,800, varying based on the transaction's complexity.
     

3. Title Insurance:

   • What It Is: Protects against potential issues with property ownership claims or disputes.
   • Cost: Generally between $500 and $1,000, depending on the property's value.
     
     

4. Home Inspection Fee:

   • What It Is: An assessment of the property's condition to identify potential issues.
   • Cost: Approximately $500.
     
     

5. Appraisal Fee:

   • What It Is: An evaluation to determine the property's market value, often required by lenders.
   • Cost: Ranges from $300 to $600.
     
     

6. Property Insurance:

   • What It Is: Coverage protecting against potential damages to the property.
   • Cost: Varies based on coverage and property specifics; obtaining multiple quotes is advisable.
     
     

7. Adjustments:

   • What It Is: Reimbursements to the seller for prepaid expenses, such as property taxes or utilities.
   • Cost: Amounts vary based on the closing date and specific expenses.

At GET Taylored Real Estate, our mission is to deliver exceptional service with integrity, transparency, and personalized care. Understanding closing costs is a crucial step in your home-buying journey, and we're here to guide you every step of the way.

Ready to take the next step? Contact us today for personalized assistance tailored to your unique needs.