Closing Cost
 
Home

Closing Cost

Application Fee

  • Description: Charged by the lender to process the application.

CMHC Fee

  • Description: Covers the cost of evaluating the borrower’s loan application.

Appraisal and Inspection Fees

  • Appraisal Fee: The cost of having the property appraised to determine its market value.
  • Inspection Fee: Fees for various inspections.

Title Fees

  • Title Search Fee: Charged for searching the property’s history to ensure there are no liens or claims.
  • Title Insurance: Protects against future claims or disputes over property ownership.

Attorney Fees

  • Legal Fees: For legal services related to the transaction, including document preparation and review.

Prepaid Costs

  • Property Taxes: Prorated property taxes from the closing date to the end of the tax period.
  • Building Insurance: The cost of the first year’s insurance premium.
  • Mortgage Insurance: If required by the lender (e.g., CMHC).
  • Utilities: Water, electricity, gas, trash, etc.

Real Estate Agent Fees

  • Commission: 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

  • Description: Costs for routine maintenance and unexpected repairs.
  • Estimation: Varies based on property condition; budget 1% to 4% of the property value annually.

Property Management Fees

  • Description: Fees paid to a property management company to handle the day-to-day operations of the property.
  • Typical Amount: Generally 8% to 12% of the monthly rental income.

Miscellaneous Costs

  • Description: Other potential costs such as moving expenses, furniture, and initial repairs or renovations.
  • Estimation: Varies widely depending on specific needs and circumstances.

Land Transfer Tax

  • Provincial Land Transfer Tax: Applies to all Ontario properties, including Toronto.
  • Toronto Land Transfer Tax: Applies to Toronto properties only.
  • Total Land Transfer Tax: The sum of provincial and, if applicable, municipal land transfer taxes.