What Are Closing Costs in Ontario? What Do They Include?
So, you’re on the brink of buying your dream home in Ontario—be it in Brampton, Mississauga, Caledon, or even Toronto. You’ve considered the down payment, but have you thought about the closing costs? Understanding these additional expenses is crucial to a successful and smooth home-buying experience.
What Exactly Are Closing Costs?
Closing costs are the fees you’ll encounter on top of the price of your new home. These can include anything from legal fees to taxes and are generally not part of your mortgage loan.
The Common Costs That Await You
Whether you’re an employed individual or running your own business, you should be prepared for these typical closing costs:
Legal Fees and Disbursements: Enlisting a legal professional to help you with title searches and other tasks is essential. Generally, this service will cost you between $1,000 and $2,500.
Land Transfer Taxes: In Ontario, this is a significant part of your closing costs. There’s a provincial land transfer tax, and if you’re buying in Toronto, you’ll face a municipal tax as well. The rate varies but is usually between 1% and 2.5% of the home’s purchase price. But here’s some good news: first-time homebuyers may be eligible for a land transfer tax rebate. For more details, check out our comprehensive guide on land transfer tax rebates.
Home Inspection Fees: A professional inspection is highly recommended to avoid any surprises post-purchase. This service typically costs between $300 and $500.
Other Costs: Appraisal fees, property insurance, and adjustment costs can also apply.
Preparing for the Additional Costs
Keith and I always recommend sitting down with our clients before we start showing homes. Most buyers only think about the down payment and forget about closing and moving costs. It’s crucial to budget for these to avoid any last-minute disappointments.
Are You Ready for Your Home Purchase?
If you’re considering buying property in Brampton, Caledon, Mississauga or the surrounding area, get in touch with us to discuss all the potential costs involved. We’re here to make your home-buying journey as straightforward as possible. You can also call us directly at 416-451-2592.
