To first time buyers, closing costs are always sort of a mystery: They have a slight idea of what it is, but don’t know what’s specifically involved or how much it will cost. Many people think it is just the notary fee and that’s all.
Sorry folks, that’s not just it.
In addition to the mortgage down-payment, you (the buyer) will need to put aside some money for the costs related a home purchase. What are these closing costs?
Here is a short list of the basic expenses you can anticipate:
- Professional Home Inspection: Only if it’s part of your offer.
- Legal fees (Notary): Costs involved in conducting a title search, drafting the title deed and preparing the mortgage, registration fees, etc.
- Property Taxes and Utilities (prepaid): Sometimes the seller may have prepaid some bills before the closing date, which you will have to reimburse.
- Land transfer tax - also known as welcome tax. This cost you don’t have to pay at the closing day, usually the city will send you a bill about a month (or so) after the signing date.
- GST & Provincial Tax – Only if you’re buying a newly constructed home.
- Home Insurance. The bank will ask you to insure your home – because they really care about your well being.
- Miscellaneous: Little repairs you might want to make to the property, etc.
There is one more: Moving costs. I don’t often include it on the list because it maybe a helping friend or a relative will help you move for free, in which case you’re very lucky- and a couple of hundred dollars richer :)
Before you ask for prices…
I made sure not to place any values to the services mentioned above just because (exact) prices change often, and revising articles to change prices are not really my thing.
Your agent should give you a break down of the fees.
Don’t have an agent? We’ll be happy to help.
Posted by: Deya Bautista - Real Estate Broker working as part of the McGill Immobilier team. Specializing in high end condos in downtown and Old Montreal. For buying or selling contact Deya at: 514.917.7889 
Another closing cost for people living in Toronto is the 'Double Land Transfer Tax'.
Yes, unfortunately, the Double Land Transfer Tax!!!!!
Alberta residents have a sweet deal. To the best of my knowledge, they still do not have a land transfer tax there!
Regards,
Neil.
Yes it is very important to calculate all these small expenditures.Becuase these small expenditures will add upto a huge amount.
I really like the way you have put together your blog I added it to my reader keep up the good work. Have a great day
If you are on the selling side another closing cost that is often missed is the early mortgage discharge penalty. If you have sold and have a closed mortgage you may be penalized. Double check with your lending institution as sometimes the penalty can be quite substantial.
Thank you very much for the info.
interesting BLOG THANK YOU SO MUCH …………
I really like the way you put it together
jsmith
I really like your blog. Can you please answer the following questions? We're in the process of buying a property in montreal.
How does a counter offer work when there are two offers for the seller? Is the seller oblidged to counter back one only? Can the seller switch back and forth between the two buyers? is there a time restriction the seller has to abide by?
Thanks!
Hi Liwei. Wow that's a lot of questions…
If there are two offer for the seller, there can be many other offers to submit, but the seller can only ACTIVELY accept ONE. Another offer can be accepted only conditional to the first offer falling through. So if the first one doesn't work, the second one will be activated, sort of speak. The seller isn't obligated to respond, he can decide not to respond and the offer is null and void. If he decides to play and respond, again he can actively accept one only. Time restriction, yes; it depends on what the offers says, if he has to reply within X amount of days/hours, etc, otherwise the offer is null and void. Switching back and forth? not allowed. Now, these are answers from real estate brokerage legal contract and offers. If you are buying privately and using those forms, then I suggest you speak with a notary. Hope this answer helps!