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.


London Market Update – 2017

Market Update

2017 was a very historic year for the London, Ontario real estate market! For the first time, home sales exceeded 11,000. London and St. Thomas Association of REALTORS (LSTAR) began tracking housing data back in 1978 and this year the number of homes sold was 11,203 and is a 8% increase from 2016.This is a very big achievement for the London and St. Thomas residential real estate market.


In 2017, the average sales price across the London and St. Thomas area was $330,037, this was up 18.0% from 2016. By geographic area, London South was $340,793, up 21.7% from 2016. In London North, average home sales price was $407,801, up 18.1% compared to the previous year, while in London East, it was $258,734, an increase of 16.9%.  In St. Thomas, it was $261,481, up by 15.2% over 2016.


St. Thomas, Ontario saw a total number of 901 homes sold in 2017, this was up 6.8% from 2016. In 2017, there were a total of 14,301 home listings, down 1.2% from 2016. The trend of high demand with low supply continued into 2017, with inventory (called Active Listings) down 35.6% from 2016.


The London and St. Thomas area also achieved a historic six consecutive months of record sales, due to a very robust out-of-town interest. As we saw from the Toronto market, with people looking for a reasonable priced home in the London, Ontario area.


2018 will be an interesting year for the London and St Thomas, Ontario area and real estate market. It will also be interesting to see how the new mortgage qualifications tests will have on the overall housing market in Canada. If you are in the process of looking for a house, or starting think about moving, remember to get in touch with a realtor, as they are a professional source for buying or selling a home! They will help guide you along your process.