To first-time buyers, closing costs are a mystery; most people have a slight idea of what they are, but don’t know what’s specifically involved or how much the cost will be. Many think closing costs refer to the notary fee, end of story. In reality, though, there’s more to it than that.
In addition to a down-payment on your mortgage, you (the buyer) will need to put aside a little extra for costs related to a home purchase. Here is a list of the usual costs involved:
- Professional home inspection (if it’s part of your offer).
- Legal fees (notary): Generally for conducting a title search, drafting the title deed and preparing the mortgage, registration fees, etc.
- Paid property taxes and utilities: The seller may have prepaid some utility bills or taxes before the closing date, which you will have to reimburse, as you will benefit from not having to pay them after the closing date.
- Land transfer tax – also known as a welcome tax. You don’t have to pay on the closing day; the city will send you a bill, usually about a month (or so) after the papers are signed.
- Home Insurance. Most banks require you to have insurance in place before closing.
- For new constructions only: Applicable GST & PST.
There are two more expenses that some first-time buyers don’t think of – one is miscellaneous repairs or renovations that you might want to begin before you move in, and the other is moving costs. Whether you are doing it with the help of friends or through a reputable moving company, there are always costs involved.
How much?
I did not put any values to the services mentioned above simply because prices can change, and there are different providers for some services, in which case it pays to get a few quotes before deciding.
Your broker/agent should be able to give you a more accurate breakdown of these fees as you go through the process. And if you don’t have a broker, we’re 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 
We have the same "problem" if i can say in Morocco to evaluate a real price to sell a house it's always depend of the buyer and seller