How much are the closing costs?

Mortgage loan insurance
If you are putting less than 20% of the house value down, you’re going to need mortgage loan insurance. Depending on the lender, the premium can be added to mortgage payments.

Appraisal fees: Your lender will typically loan a percentage of the home’s purchase price or the market appraisal of the property. Cost will depend on the size and complexity of the assignment.

Title Insurance: At one time land surveys were required by lenders before signing off on the loan. Today there is title insurance which is recommended by your lawyer. It’s a one time fee, and is typically $250-$300.00.

Home Insurance The lender will require proof of property insurance for the replacement value of the home and it’s contents from the day you take ownership.

Application fee Some lenders will pass on the cost to process your applications. These fees vary and some lenders will waive them entirely if you have other accounts with them.

Home Inspection fee A home inspection protects the buyer by revealing any problems in the property that you would want to know about before firming up on the agreement of purchase and sale.

Legal fees You can save some of the legal fees usually charged by the lender if your lawyer draws up the mortgage. You’ll also pay for disbursements which are the costs involved in drawing up the title deed, conducting a title search, and preparing and registering the mortgage.

Land Transfer Tax: First time home buyers qualify for a maximum $2000 (LTT on a $227,500 home) provincial rebate and a maximum of $3725 (LTT on a $400,000 home).

Goods and Services Tax: Resale homes are exempt from GST but it does apply to newly constructed homes and may qualify for a partial rebate depending on the sales price and if the home is going to be your primary place of residence.

Other Costs: These include movings costs, fees charged by utilities for service hook-ups, property tax and other adjustments (an adjustment takes place when the seller has already paid for something in advance and wants to be credited for the unused portion on the date the house becomes yours), and ongoing maintenance (condo fees, etc.) and utility costs.