Toronto/Etobicoke home closing cost

It’s important to factor closing costs into your home buying budget.  Below you’ll find a list of Etobicoke home closing cost that you will have when purchasing a home or condo in the GTA.

Property valuation fee
Approximate Cost: $750 – $1,000

Used to determine the property lending value for mortgage purposes. This value may or may not be the same as the purchase price of the home. Whether or not you require this will be decided by your lender.

Home inspection fee
Approximate Cost: $500

The home inspector evaluates the structures and systems that make up your home and provides you with a written report.

Property survey 
Approximate Cost: $750 – $1,000

A survey indicates the boundaries and measurements of the land and positions of major structures, and any registered or visible easements (such as a driveway) or encroachments such as a neighbour’s fence) on the property. May already be available through the Seller’s Agent.

Land Transfer tax
Approximate Cost: Varies – Toronto properties have an extra land transfer tax, CLICK HERE for details 

This is charged whenever a property changes hands and is based on the purchase price. In some cases, first time home buyers may be exempt from a portion of this cost. As an example,if you are thinking about purchasing a home in Toronto for $300,000, the provincial land transfer tax is $2,975 and the municipal land transfer tax is $2,725 for a total cost of $5,700.

Legal fees and related expenses
Approximate Cost: $1,300 – $2,500

These fees vary by province and are subject to GST or HST where applicable. Ensure your lawyer’s quote includes all related expenses and disbursements, not just legal fees. Make sure your interests are protected by discussing your Offer to Purchase with your lawyer or notary prior to signing.

Title insurance
Approximate Cost: $250

Title insurance is optional and covers problems that may arise due to encroachment issues (for example, a structure on your property is actually part of your neighbour’s property and needs to be removed), existing liens against the property’s title, title fraud, undischarged mortgages and other issues relating to the property’s previous owners.

Insurance costs for high-ratio mortgages
Approximate Cost: Variable

Usually, mortgage default insurance premiums range between 0.5% and 2.75% of the principal plus applicable fees (may be subject to provincial sales tax which cannot be added to mortgage amount) If your down payment is less than 20% of the purchase price of your home, you must pay a one-time insurance premium on your mortgage amount. You can make arrangements to pay the premium to your bank before closing, or it can be added to the principal amount of your mortgage. If it is added to the principal amount of your mortgage, you will pay interest on it at the same interest rate you pay on the principal amount of your mortgage.

Interest adjustments Approximate Cost: $100 – $1,000

You will need to pay interest on any gap between the closing date of the purchase and the first payment date of the mortgage. You can avoid an interest adjustment by arranging to make your first mortgage payment exactly one.