Closing Costs | Collingwood and Blue Mountain Area Real Estate

Typical Real Estate Closing Costs

Today, it is possible to buy a home with no money down however, everyone who buys any form of real estate will have some other costs to consider. Closing costs vary by jurisdiction and transaction but the following chart will give you an idea of expenses to be considered:

Deposit

Usually submitted upon acceptance of an Offer to Purchase. The deposit is usually held in trust by the Listing Brokerage and it forms part of the downpayment on the closing date. Typically ranges from $1,000 to 5% of the purchase price
Septic Inspection Report

Approximaely $250.00
Legal Fees & Expenses

Varies but normally $900 to $1300 for legal fees and disbursements.
Land Transfer Tax

This is a provincial tax levied when title to land is transferred. It is payable by the Purchaser upon the registration of every transfer of land. (i.e. on closing day) The calculation of this tax on a single family home in Ontario is as follows:

Sale Price Tax Paid

$0 – $55,000 0.5%

$55,001 – $250,000 1.0%

$250,001 – $400,000 1.5%

$400,001 – and up 2.0%
Home Inspection

$275-$350 plus GST. Not mandatory, but recommended!
Bank Appraisal Fee

Usually about $200.00 +GST but the bank may absorb that cost depending on your negotiations
Mortgage Application Fee

Find out whether or not your lending institution charges to process your mortgage application. In many cases, if you are dealing with a bank that you have other accounts with, they will waive the application fee.
GST

Typically, resale homes are exempt from GST unless it has been “extensively renovated.” GST is payable on the fees paid to real estate agents, mortgage brokers, appraisers, lawyers fees, etc. A new home is not exempt from GST even if the home is in an individual’s name but may be rebated in part. GST may be paid by either the builder or the buyer, depending on what is negotiated at the time of purchase.
Mortgage Insurance Premium

This premium is only applicable if you are putting less than 20% of the purchase price as a down payment. You have the option of adding the premium to your mortgage and amortizing it over the term of your mortgage. In the latter case, it does not form part of your closing costs as you will pay it over the term of the mortgage. Premiums range from 0.5% to 3.75% of the mortgage amount which you can check here:
http://www.cmhc.ca/en/co/moloin/moloin_005.cfm
Note that PST on the premium is due and payable on the closing date.
Survey

$600 – $800 if necessary
Title Insurance

Title insurance is an insured statement of the condition of title or ownership of real property, at the time the policy is issued. Approximate cost $250.00 (residential)
Status Certificate

$100, but only applies to condominiums
Tax Adjustment

Depending on what the Seller has already paid for the year, there will be an adjustment based on the number of days you will own the house in that year.
Fuel Adjustment

In the case of oil heat, the Seller may top up the tank on closing and you would be charged that amount.
Homeowners Insurance

Varies
Moving Costs

Varies
Service and Utility Connections

Depends on the service provider but for example. COLLUS in Collingwood requires a $200.00 deposit from new customers.

This summary of closing costs for real estate is a guideline only to assist you but should not be relied upon. For a closer examination of costs it is best to contact each party directly.

Sale Price	Tax Paid
$0 – $55,000	0.5%
$55,001 – $250,000	1.0%
$250,001 – $400,000	1.5%
$400,001 – and up	2.0%