CLOSING FEES is a term that refers to the various payments, taxes, and fees-other than the purchase price of the property -that the buyer must pay-out when buying a home. So that you can budget effectively, we have included a list of the most typical expenses below.REAL ESTATE FEES is amount of fees that you will have to pay dependent upon the relationship you choose with a sales rep. Normally a "seller" engages a "sales representitive" from a "brokerage" (Bosley Real Estate) to represent them when selling their property. The seller pays a commission fee of 5% to the listing brokerage, who splits this fee with the "buyers broker" on successful closing of the transaction. There are variables to this process, so it is best the fees and the relationship between a buyer, seller and agent are discussed up front. The process is carefully managed according to numerous governing bodies including Real Eestate Council of Ontatio, Ontario Real Estate Association and The Toronto Real Estate Board (TREB).
LEGAL FEES will vary depending on the lawyer, buyers can expect to pay somewhere between $500- $1500 to close their real estate transaction.
HOME INSPECTIONS are encouraged once a suitable home is found for purchase. Buyers are urged to purchase a home inspection (($350 - $500 (dependant on the size of the house) from a certified inspector)). A termite inspection is an additional $175. A pre-sales inspection may be completed by engaging a Home Inspector to ensure all issues are identified and / or resolved prior to going on the market.
SURVEY, typically each property must have a survey to obtain financing. Frequently, the seller has one that can be transferred to the new owner, but a new survey costs approximately $700 - $1000.
TITLE INSURANCE protects financial institutions, and in turn you, against loss through adverse claims or hidden interests in their properties. This unique product was developed as a result of inadequate deed registry systems; the reliance on privately held mortgages, which were not always registered; and the somewhat haphazard manner in which lands were opened for settlement.
MORTGAGE SET-UP FEES are often extra costs associated with setting up your mortgage, such as an appraisal fee ($150-$200), or insurance. Ask your lender for details.
LAND TRANSFER TAX (Provincial and Toronto Municipal): The amount of Land Transfer Tax you will pay is dependent on the purchase price of your house. See the calculator on the next tab.
FIRE INSURANCE: is mandatory by lending institutions. $200 - $1200 per month depending on numerous factors associated with the age, construction and location of the home. Get comparative quotes prior to committing. Coverage options vary greatly.
