Mortgage Loan Insurance:
If you are have less than a 20% downpayment on your mortgage, you will be subject to Mortgage Insurance. Most lenders work this fee into your mortgage, but it is good to confirm and clarify with your lender.
If you work with a bank or a financial institute, they may charge you between $70-350 for an appraisal for the purpose of finalizing the mortgage approval. Most mortgage brokers don’t charge this fee.
A deposit of approximately 5% of the purchase price is submitted with the Purchase of Sale Agreement when the Buyer offers on the home. It is held in a Deposit Trust Account with the Listing Brokerage and goes towards the downpayment upon the closing of the deal when the Buyer takes possession.
The mortgage lender will require proof of Property Home Insurance for the replacement value of the house and its contents. The Lender will want proof that this is lined up to secure the mortgage before closing on the property.
Provides coverage in case of problems with the property title among other things. The cost is relatively low, usually a few hundred dollars and is usually included in your overall Lawyer Fee.
Home Inspection Cost:
A Home Inspection provides an understanding of the health of the home and reveals any deficiencies. This is an important step before offering on a house. This inspection can cost approximately $400-700.
The Lawyer draws up the mortgage & the title deed, conducts a title search, and prepares and registers the mortgage on the title. He corresponds with the Seller’s lawyer and organizes the release of the keys on closing day. Depending on the lawyer you choose, this cost is usually approximately $1500-$2000 for a Buyer.
Land Transfer Tax:
Use the Land Transfer tax calculator from the below link to calculate both your Ontario and City of Toronto Land Transfer Taxes. First time home buyers qualify for a rebate of a maximum $2,000 (LTT on a $227,500 home) provincial rebate and a maximum $3,725 (LTT on a $400,000 home) City of Toronto rebate. Click here to access the Land Transfer Tax Calculator.
These include moving 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.
Goods and Services Tax (New Homes and Pre-Construction Only):
Resale (used) homes are exempt from GST but it does apply to newly constructed homes and the Buyer may qualify for a partial rebate depending on the sales price and if the home is going to be your primary place of residence.