Closing Costs

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:

First $55,000.00

                          Municipal ( $55,000.00 X .005 ) or 1/2% = $275.00
                          (Toronto only)
                          Provincial ( $55,000.00 X .005 ) or 1/2% = $275.00

                                                            PLUS

Between $55,000.00 and $250,000.00

                          Provincial ( $195,000 X .01 ) or 1% = $  1950.00

                                                             PLUS

Between $55,000.00 and $400,000.00

                           Municipal ( $345,000.00 X .01 ) or 1% = $3450.00
                           (Toronto only)

Between $250,000.00 and $400,000.00

                            Provincial ( $150,000.00 X.015 ) or 1.5% = $2250

                                                              PLUS

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.

Go to:  Revenue Canada –  First Time Home Buyers Tax Rebate

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.

Go to:  City of Toronto Municipal Land Transfer Tax 
 



The land transfer tax will probably be the largest of the closing expenses you will encounter.


However, there are other costs to consider;

  •    Legal fees:  Anywhere from $1,000.00 to $2,000.00
  •    Cable/telephone/gas/general utilities hook up fees
  •    Status Certificate for condominiums:  $100.00
  •    Home inspectors fee: $300.00 to $500.00
  •    Any prepaid expenses for the year from the previous owner
  •    Moving costs:  From moving yourself to hiring a moving company