Closing Costs and Estimates

Closing Costs and Estimates

Several first-time home buyers are often shocked when they see the total cost of their home purchase. This blog will go over some of the closing costs of the home as well as a few “hidden” expenditures you might expect to pay


Land Survey

Even though most lenders may agree to the existing property survey, some might have a land survey done again, depending on the last time a survey was done.


Home Inspection

Majority of lenders will request a home inspection, but even if they don’t it is always something that should be done.



If you are planning on putting a down payment of less than 20% of the purchase price, your lender will require that you purchase mortgage default insurance. While the cost varies widely depending on the home you buy, where it’s located and the type of coverage you require, expect to pay at least $800 per year for coverage.


Adjustment Costs

These are costs the seller prepaid and can include property taxes, utility bills, heating oil, lawn care or property maintenance services as well as other annual contracts. For metered services, such as hydro, gas or water, the meters are read on closing day (the day the house changes ownership), to verify down to the last cent what the seller and buyer owes.


Legal Fees

Your lawyer will do a title search, register and prepare your low mortgage rate and prepare the title deed of the house.


Land Transfer Tax

Land Transfer tax must be paid by everyone who purchases property in Canada. For first time homebuyers they can be exempt from this tax.



Harmonized Sales Tax (HST) was put into effect on July of 2010 in Ontario and is applied to the purchase of all new homes.



Your lender will only lend you a percentage of either the appraised market value of your home, or the home’s purchase price– often, the lesser of the two.


Unsure about these additional costs and how they will impact buying your home? Make sure to contact me about these costs or if you have any questions about your mortgage.