Expenses Related to Buying a Home

You will have costs above and beyond the purchase price. Here's what to expect so there are no surprises.

Typical Expenses Due on Acceptance

Deposit                                                                                             5%  

This becomes part of the purchase price

Appraisal Fee                                                    $250 - $400

Typically required for conventional mortgages by the bank

Home Inspection                                          $500 - $800+

Cost varies with type (e.g. cottage), size and age of property

Typical Costs Due on Closing

Legal Fees                                                      $1200 - $2000

These Include Disbursements

Closing Adjustments                                                    ~~~~

Items vary by deal. Examples include - but aren't limited to municipal property taxes, utilities and condo maintanance fees.

CHMC, Genworth or Canada              Up to 4.5% of the

Guaranty Mortgage Loan      Mortgage Loan Amount

Insurance(if applicable)                                                         

Mortgage loan insurance is typically required by lenders when homebuyers make a payment less than 20% of the purchase price. The premium is rolled into the mortgge, but not the PST.

Land Transfer Tax - Provincial             Up to 4.5% of the Mortgage Loan Amount

For single family or two family homes outside the CIty of Toronto

  • Up to $55,000:  0.5%
  • $55,000.01 to $250,000: 1% minus $275
  • $250,000.01 to $400,000: 1.5% minus $1,525
  • $400,000.01 to $2,000,000: 2% minus $3,525
  • Amounts exceeding $2,000,000: 2.5% minus $13,525

The first time buyer rebate will reduce the Land Transfer Tax by up to $4,000 for principle residence.


Typical Costs Due on Closing

Land Transfer Tax for the City of Toronto                          

For single family or two family homes in the City of Toronto you pay both city and provincial tax.

  • Up to %55,000: 0.5%
  • $55,000.01 to $250,000: 1% minus $275
  • $250,000.01 to $400,000: 1.5% minus $1,525
  • $400,000.01 to $2,000,000: 2% minus $3,525
  • Amounts exceeding $2,000,000: 2.5% minus $13,525

First time buyers of principle residences in Toronto recieve rebate of up to $4,475 along with their provincial rebate of up to $4,000

HST for New Construction                                                     

13% of the sale price minus any appliciable rebates.

Mortgage Adjustment Period                                             

These are fees owing on the portion of the month following the closing to the end of the month. The bank is entitled mortgage interest on closing at the point Actual mortgage payments don't start until one calendar month after closing.

Property Insurance                                                                  

The property must be insured in order to get a mortgage. Costs vary policy to policy.

Status Certificate                                                           $100

This applies to condominiums only.

It is a legal document with all the financial information about the condominum corporation, information on special assessments and outstanding legal actions.

Tax Advance                                                                              

This may be required by lenders

Title Insurance                                                  $300 - $500

This is not a legal requirement in Ontario, but you may want to confer with your lawyer on its advisabililty.

It simply protects property owners and their lenders against losses due to the property's title.

Utility Hookups                                                              $200

These include Toronto Hydro, Enbridge, Rogers, Bell etc. Rogers and Bell charges are highly negotiable and often waived.


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