Application Fee
- Charged by the lender to process the application.
CMHC Fee
Covers the cost of evaluating the borrower’s loan application.
Appraisal and Inspection Fees
- The cost of having the property appraised to determine its market value.
- Fees for various inspections.
Title Fees
- Charged for searching the property’s history to ensure there are no liens or claims.
- Protects against future claims or disputes over property ownership.
Attorney Fees
- For legal services related to the transaction, including document preparation and review.
Prepaid Costs
- Prorated property taxes from the closing date to the end of the tax period.
- The cost of the first year’s insurance premium.
- If required by the lender (e.g., CMHC).
- Water, electricity, gas, trash, etc.
Real Estate Agent Fees
Typically 1% to 3.5% of the purchase price, split between the buyer’s and seller’s agents. The seller pays this fee, but it impacts the overall cost of the transaction.
Maintenance and Repair Costs
- Costs for routine maintenance and unexpected repairs.
- Varies based on property condition; budget 1% to 4% of the property value annually.
Property Management Fees
- Fees paid to a property management company to handle the day-to-day operations of the property.
- Generally 8% to 12% of the monthly rental income.
Miscellaneous Costs
- Other potential costs such as moving expenses, furniture, and initial repairs or renovations.
- Varies widely depending on specific needs and circumstances.
Land Transfer Tax
Applies to all Ontario properties, including Toronto.
- Applies to Toronto properties only.
- The sum of provincial and, if applicable, municipal land transfer taxes.