Real Estate Buying Costs

When buying property in Ontario, the following costs should be budgeted for in addition to the purchase price.

•     Home Inspection: This cost is optional. However, most buyers have a home inspection done to make sure the property is in sound structural condition, that plumbing, heating/cooling and electrical systems are in good working order and meet all safety standards and codes.

•     Land Transfer Tax: This tax is mandatory. Everybody buying property in Ontario must pay the Provincial Land Transfer Tax. In Toronto, the Municipal Land Transfer Tax is added (eg. Property Purchase Price $500,000 + Provincial Land Transfer Tax $6,474.00 + Municipal Land Transfer $5,725.00).

•     Legal Fees and Costs: Legal fees vary, and include a title search, registration of title, disbursement costs and statement of adjustment costs which are the assumption of taxes, utilities and maintenance fees.

•     Title Insurance: Title insurance can be purchased through your lawyer at the time of closing.

•     HST: HST is payable on lawyer’s fees, and purchase of title insurance.

•     Mortgage Costs: There could be costs involved in arranging a mortgage such as appraisal fees and mortgage processing fee.

•     Home Insurance: Lenders require that property insurance is in place on the possession date.

•     Additional Costs can include movers, cleaning services, landscapers, decorators, contractors and other trades people.