Typical Closing Cost Range

• Generally, budget between 1.5% to 4% of the home's purchase price for closing costs.

• For example, on a $300,000 home, closing costs could range from $4,500 to $12,000.

Common Closing Costs

• Land Transfer Tax: Varies by province and municipality. Often the largest closing cost.

• Legal Fees: Typically $900 to $1,500 for a real estate lawyer.

• Title Insurance: Usually $150 to $400.

• Home Inspection: Around $500.(optional)

• Appraisal Fee: $300 to $600 (sometimes covered by lender).

• Property Insurance: Varies, but budget at least $500 for the first year.

• Adjustments: For prepaid property taxes or utilities by the seller.

Additional Potential Costs

• Mortgage Default Insurance: If down payment is less than 20%. Premium can be added to mortgage, but provincial sales tax on premium must be paid at closing.

• GST/HST: Applies to newly built homes, can be significant.

Factors Affecting Closing Costs

• Property location

• Purchase price

• Type of property (new vs. resale)

• Down payment amount

Tips

• Budget for 3-5% of purchase price to be safe, especially if buying and selling simultaneously.

• First-time homebuyers may be eligible for rebates on some closing costs.

• Discuss potential closing costs with your real estate agent or mortgage broker early in the process.

Remember, closing costs are in addition to your down payment and must typically be paid upfront. Being prepared for these costs can help avoid financial stress during the home buying process.