Buyer's Cost Breakdown
The figures provided below are an estimation of approximate costs and will vary depending on each situation. The breakdown is provided to educate you so the expenses can be anticipated.|
Legal Fees The amount lawyers charge for legal fees can vary from one firm to another. So shop around for a reputable lawyer who charges reasonable fees. Some Unions have included legal fees as a benefit in there negotiated contracts. (e.g. CAW) refer to the CAW website for more details http://www.cawlsp.com/. You will also find some lawyers I recommend on the links page. | $500.00 | |||||||||||||||
| Disbursements by lawyer made on your behalf: | ||||||||||||||||
| Plan of Survey/OR Title Insurance | ||||||||||||||||
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In most cases a new survey will not be required. If the present owner has a copy of an old one it will usually suffice. The existing owner may have to attest to changes made to the property but this will be handled by the lawyers. In Lieu of a survey, Title Insurance is available at a reasonable cost and is acceptable at most Bank/Mortgage Companies. Depending on which company you buy from and the purchase price of the house, the cost of the premium is approximately $150.00. |
$.00 Or $150.00 | |||||||||||||||
| Tax Certificate | $25.00 | |||||||||||||||
| Utilities Report* | $10.00 | |||||||||||||||
| Union Gas Report* | $25.00 | |||||||||||||||
| Mortgage Registration Fee | $50.00 | |||||||||||||||
| Deed Registration Fee | $50.00 | |||||||||||||||
| Execution Certificate | $99.00 | |||||||||||||||
| Title Search * (average cost used, can be more on complicated searches) | $75.00 | |||||||||||||||
| Photocopy Expense* | $15.00 | |||||||||||||||
| Postage Expense/Courier Expense* | $10.00 | |||||||||||||||
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Land Transfer Tax The basic tax is 1/2 of 1% on the first $55,000.00, and 1% on the excess to $250,000.00 and there is an additional 1.5% on the amount in excess of the $250,000.00 Example Below Based on a Home Purchase of $150,000.00
| $1225.00 | |||||||||||||||
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Property Tax Adjustment This amount represents the amount of property taxes paid by the vendor (seller) in advance and representing taxes owing past the closing date on the property. You will be required to pay this amount to the lawyer at closing, in order to reimburse the vendor. Depending on your closing date the amount could be anywhere from 0 to 3 months worth of taxes, depending on how the taxes are required to be paid by the municipality. If the mortgage company is paying your property taxes for you, I would suggest that you attend there office a month after the closing date of the mortgage and discuss the payment method and how that may affect your payment. The administration of paying your taxes vary from institution to institution and so that the tax account does not end up in arrears resulting in your mortgage payment being increased you can discuss the various options with them and avoid any surprises. | As Required | |||||||||||||||
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Fire Insurance You will be required to provide to the lawyer confirmation of Insurance on the property. Fee's vary so shop around. Often if you carry your Car and Property Insurance with the same company they will give you a discount. | As required | |||||||||||||||
| Fees subject to GST are marked with an * as they apply | ||||||||||||||||
| Other Fees | ||||||||||||||||
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CMHC Insurance Fees - (Canada Mortgage and Housing) CMHC Insurance is required on high ratio mortgage loans with a down payment of less than 25% of the purchase price. | ||||||||||||||||
| 1) Appraisal & Application Fee for CMHC (This amount will be required to pay at closing or sooner depending on the Bank/Mortgage Companies policy) | $235.00 | |||||||||||||||
2) Insurance Premium for CMHC - Depending on the amount of the down payment the insurance premiums are charged at a rate as follows:
Example: on the purchase of a home for $150,000.00 with a minimum down payment of 5% or $7500.00 the insurance premium would be $4875.00 ($150,000.00 - $7500.00 = 142,500.00 x 3.25% = $4875.00) Please Note: This Insurance Premium can be added to the mortgage loan or paid in full at closing. In most cases the purchaser will elect to have it added to the mortgage loan to avoid the additional expense at closing. GST is applicable on the Insurance Premium and is required to be paid at closing and cannot be added to the mortgage loan. |
Added to Mortgage Loan Amount GST on Ins. Prem. $341.25 | |||||||||||||||
| Appraisal Fee for Low Ratio Mortgage Loans - where the down payment is a minimum of 25% (Not required if house is to be CMHC Insured) The mortgage company will often waive the fee to get your business. | $175.00 if applicable |