This site uses cookies.

The types of cookies we use, and the way we use them, are explained in our Privacy Policy. By clicking "Accept" or continuing to use our site, you agree to our use of Cookies. More information

 

|          |

 

UNDERSTANDING ALL THE COSTS INVOLVED AT CLOSING WILL REDUCE STRESS AND

 

GIVE YOU A NEGOTIATING EDGE TO GET YOUR DREAM-HOME

 
 
 
 
 
 
APPRAISAL   Generally required with new homes, it provides
the lender with a professional opinion of the market value of the
property.  |  $100 - $300
 
 
 
HOME INSPECTION  |  A professional, top to bottom inspection of
the home is for the buyers benefit. When hiring a home inspector,
making sure they have liability insurance will take care of anything
that may have been overlooked.  |  $300 - $400

 


 

 
TITLE INSURANCE  |  A recent survey of the property is
sometimes required by lenders however; In lieu of the survey
today most lenders will accept title insurance, which can cost
considerably less.  |  $300 - $500
 
 
FIRE INSURANCE  |  Mortgage lenders require fire insurance
to be in place from the time you take possession of the property.
The amount of insurance coverage required is generally the full
replacement cost of the home but can vary depending on property
size, amount of coverage, the insurance company and the
municipality.  |  $250 - $600 /yr.
 

 

NEW HOME WARRANTY  |  In most provinces, new homes are
covered by a new home warranty program. This expense covers
the purchaser and protects you if the builder defaults or fails to
build to an agreed-upon standard, by funding the finishing or
repairing of deficiencies to a maximum amount.  |  $500 - $800

 

Click here for information on Tarion, new home warrantys.


 

 

LEGAL COSTS & DISBURSEMENTS  |  Lawyers and notaries
charge fees for their services involved in drafting the title deed,
preparing the mortgage, and conducting the various searches.
Disbursements are out-of-pocket expenses incurred during the
process such as registrations, searches, and supplies.  |

 

 

CLOSING ADJUSTMENTS  |  An estimate should be made for
additional closing adjustments to handle any bills the seller has
prepaid such as property taxes, utility bills, and other charges.
Any bills after the closing date are the responsibility of the
purchaser. A lawyer will let you know what they are once the
various searches have been completed.  |

 

 * Always consult with your lawyer about the exact costs involved for your specific situation * 


 

 

SALES TAX ON MORTGAGE INSURANCE  |  If your mortgage is
insured (CMHC or Genworth Financial), you will be required to pay
the applicable taxes on the insurance premium at closing. While the
insurance premium can be added to the mortgage amount, the tax
must be paid at closing.  |
 
 
SALES TAX  |  HST is payable on the purchase of newly constructed
homes. If you are purchasing a new home make sure to note if the
purchase price states either "Plus HST" or "HST Included," and who
gets any HST rebates.  |
 
* Many builders have included this cost into the purchase price so the buyer does not
have to pay at closing *
 

 

LAND TRANSFER TAX  |  In The Ontario land transfer tax, which
varies depending on your ciy, is based on the purchase price and
payable by the purchaser. First time home buyers purchasing a
new or re-sale home, may be entitled to a refund of up to $2000.  |
 
$           0  -  $  55,000  =  .05%
$  55,001  -  $250,000  =  1.0%
$250,001  -  $400,000  = 1.5%
$400,001  +                  = 2.0%

 

Click Here to use the Land Transfer Tax Calculator

 

 

 


 

Contact me today, learn more about how I run my business and find out if we're a good fit.

 

 

 

 

JASON ANGLE, 
SALES REPRESENTATIVE
 
DIRECT  |  613-316-3081
FAX        |  613-728-0548
 
         

 

 

 
 
 
COLDWELL BANKER 
FIRST OTTAWA REALTY, 
BROKERAGE
 
1749 WOODWARD DRIVE,
OTTAWA, ON   K2C 0P9

OFFICE  |  613-728-2664