First time buyers often omit the closing costs of a real estate transaction. Total closing costs can add a weighty
chunk to the cost of the new home or condo. Following is a list which can be added to with many minute details.
Land Transfer tax, both Provincial and Municipal:
Municipal ( $55,000.00 X .005 ) or 1/2% = $275.00
Provincial ( $55,000.00 X .005 ) or 1/2% = $275.00
Between $55,000.00 and $250,000.00
Provincial ( $195,000 X .01 ) or 1% = $ 1950.00
Between $55,000.00 and $400,000.00
Municipal ( $345,000.00 X .01 ) or 1% = $3450.00
Between $250,000.00 and $400,000.00
Provincial ( $150,000.00 X.015 ) or 1.5% = $2250
Amount above $400,000.00
Municipal ( amount X .02 ) or 2%
Provincial ( amount X .02 ) or 2%
Click Here to find out what your combined total land transfer tax will be on your purchase.
For first time home buyers there is a land transfer tax rebate available from the Ontario government to a maximum of $2,000.00 and must be applied for within 18 months of purchasing your home.
The maximum City of Toronto first time buyer land transfer tax rebate is $3,750.00 which is the amount paid on a $400,000.00 purchase.
The land transfer tax will probably be the largest of the closing expenses you will encounter.
However, there are other costs to consider;