ADDITIONAL CLOSING COSTS TO KNOW

The total cost of buying a home involves not only the purchase price of the property, but also other costs that arise on closing the transaction. These expenses, incurred by the buyer, are necessary to complete the purchase but are outside of the purchase price for the property. Fees, types of services provided, and procedures required in the closing process will vary. Ask all of your team members (lawyer, mortgage lender, realtor, home inspector, etc.) what the costs are for their services.  The following list is for illustration purposes only and only some may apply to your specific transaction:

• Adjustments for property tax and utility bills
• Legal expenses and disbursement, lawyers services and expenses
• Mortgage expenses included interest, arranging costs, registration of a new mortgage in the land titles office
• House insurance for fire and other hazards, typically including liability coverage. This will be something you will either pay 1x yearly or monthly.
• Title search and registration of appropriate documents in the land registration office (will be part of the lawyer fees)
• Cost of survey if the seller does not have one to provide and you want one.  (If not in the sellers possession they are not legally obligated to provide one).
• HST: most purchases of "NEW" housing (ex. from a builder) require the payment of HST but resale homes do not require HST, it is included in the purchase price.  However HST is payable on lawyer's fees, most disbursements, home inspections, and any other services you seek during the process.
• Land transfer tax.  Don’t forget to let your lawyer know you are a first time home buyer; you might qualify for the first time home buyer rebate. 
• Title Insurance – 1x fee paid on closing with your lawyer.
• Personal expenses, such as, moving costs and purchase of household goods. Once a total is calculated, the closing costs can be substantially higher than the buyer anticipated. All buyers should be aware of these extra costs before finding themselves legally bound to a contract and possibly unable to fulfill the financial terms. It is strongly recommended to save at least 2% - 3% of the purchase price for these extra costs.