130 Westmore Dr, Unit# 5,Toronto, ON M9V 5E2
Mon to Fri - 10:00 am-6:00 pmSaturday - 12:30 pm - 5:00 pm, Sunday - Closed

Closing Cost

Closing Cost


When buying a house, it’s crucial to consider all of the extra costs. This includes your home or business’s closing costs. Fees for closing costs include:

  • In-Home Examination
  • Property Purchase Deposit
  • Property Appraisal Fee
  • Your Property’s Purchase Balance
  • Disbursements and legal fees
  • Title Insurance
  • Land Transfer Tax
  • Closing Changes
  • Insurance With a High Ratio
  • Status Certificate (for condo purchases)
  • HST on New Home Purchases
  • Premiums for a New Home Warranty Program
Real Estate Lawyer Moncton

Inspection Fee for a House

Before making an offer on a home, the buyer must hire a home inspector to assess the property’s condition. This includes a standard detailed list of additional items such as structural soundness, appropriate insulation, working utilities, and sound roofing. Sellers who want a quick and clean sale often make sure their home is in good shape before putting it on the market. If the home inspection reveals significant items that will need to be repaired, the buyer’s offer on the property may be affected.

Deposit on the Purchase of Real Estate

A buyer’s minimum deposit is 5% of the property purchase price; however, in today’s competitive real estate market, buyers frequently offer a significantly higher deposit to the seller as a goodwill gesture in order to close the deal quickly. If the property is the subject of a bidding war, sellers are more likely to accept offers from those who offer a deposit that is significantly higher than the 5 percent minimum. Payment is usually made within 24 hours of the acceptance of an offer.

Property Valuation

This appraisal is a monetary valuation of the home that is used to determine the property’s fair market value. It’s usually done by the lender after the offer is accepted but before the mortgage is advanced and the buyer takes possession. The cost of a property appraisal is usually covered by most large banks in Canada; however, if a buyer works with a smaller lender, the buyer may be required to pay for the appraisal themselves.

Your Property's Purchase Balance

After deducting the deposit you made on your purchase, this fee is the balance owing. In most cases, your lender/bank will cover this balance, which is your mortgage.

Legal Payments and Expenses

A buyer must retain the services of a real estate lawyer prior to closing to ensure that they are legally protected. For their client, an attorney will review the Offer to Purchase, register the deed and mortgage, conduct a title search, organise the closing documents, and settle any outstanding disbursements.

Insurance on Title

When a property changes hands, a title insurance policy is purchased. This insurance shields the buyer from an undiscovered flaw in the property’s title. The buyer’s real estate lawyer is usually in charge of arranging title insurance. Although title insurance is not required, we strongly advise you to purchase it because it protects you from a variety of risks such as fraud, forgery, and title defects, to name a few. Furthermore, having Title Insurance eliminates steps such as obtaining an up-to-date land survey (approximately $1000) and a Compliance letter (approximately $100).

Tax on Land Transfers

A land transfer tax is imposed on all homes purchased in Ontario. When the deed is registered, this tax is paid to the government at the time of closing. There is an additional land transfer tax that must be paid to the government by buyers who purchase property in Toronto. The land transfer tax is frequently the most expensive closing cost for buyers. The cost of land transfer varies depending on the property’s price, size, and location.
Exemptions may be granted to first-time homebuyers and those who purchase newly constructed homes. Homeowners who meet these requirements may be eligible for a $2,000 tax break.
Land Transfer Tax in Toronto: An additional Municipal Land Transfer Tax is imposed on residents of Toronto. Only first-time homebuyers and those purchasing newly constructed homes may be exempt. Homeowners who meet these requirements may receive a $2,000 tax break.
A breakdown of the Ontario Land Transfer Tax: This information was obtained from a different source. This content cannot be reworded to make it unique.
0.5 percent of the first $55,000 is taxed
1% – on amounts ranging from $55,000 to $250,000
On a balance of more than $250,000, 1.5 percent is applied.
2.0% – on all transactions exceeding $400,000
An explanation of the Toronto Land Transfer Tax
0.5 percent of the first $55,000 is taxed
1% – on amounts ranging from $55,000 to $400,000
2.0% – on all transactions exceeding $400,000

Adjustments to the Final Report

Adjustments are made if a seller has paid their property tax, utility fees, condo fees, and special assessments for the year or any period of time beyond the selling date, and the buyer reimburses the seller for any overpayment.

Insurance with a High Ratio

A high-ratio mortgage is one in which the buyer’s down payment is less than 20% of the property’s purchase price. Mortgage default insurance is usually required by most financial institutions and lenders. The insurance premium is calculated using a sliding scale that ranges from.5% to 2.75 percent of the total mortgage amount. It is possible for buyers to add it to their mortgage balance.

Certificate of Status

This fee is only applicable to condominium purchasers. The condominium corporation’s financial and legal affairs are detailed in the status certificate, as are any outstanding special assessment fees.
Purchases of new homes are subject to the Harmonised Sales Tax (HST). New home purchases began to be subject to HST on July 1, 2010, but new homeowners can qualify for a deduction by lowering the provincial sales tax applied to the first $400,000 of the purchase price to 2%. It’s possible that a builder will include HST in the purchase price, so it’s crucial to know who will pay the HST before the closing date.

Premiums for the New Home Warranty Program

In Ontario, new home builders are required to purchase warranty coverage through Tarion Corporation for each home they construct. This warranty is in effect for a period of 365 days. Builders frequently include the cost of this coverage in the purchase price, but some builders can charge the premium back to the buyer after the sale as part of the closing disbursements. It’s critical to understand the warranty’s scope and how it will be reflected at the point of purchase.

How Much Do Closing Costs For Home Buyers Cost?

Closing costs are calculated based on a number of factors, including the house or commercial property’s purchase price and location. Land transfer tax calculators can help you figure out how much you owe. For these costs, here is a starting point/range:

Home inspections start at $350 and go up from there. Once the inspection company has completed the job, they will be paid on site.)
Amount Paid as a Down Payment on a House (A minimum deposit of 5 percent of the property purchase price)
Fee for a property appraisal (up to $400). Usually taken care of by the lender)
Legal fees and disbursements ($1800 and up) on the purchase of your property (Full payment due on the day of closing)
Insurance on the title ($300-$400). Usually included in legal fees and disbursements.)
Tax on Land Transfers (Land Transfer Calculator will provide that calculation)
Adjustments to the closing price ($200 and up). Depending on the seller’s payment terms)
Insurance with a High Ratio (Based on the cost of the mortgage secured)
Certificate of Status (Only for condo purchases.) Usually up to $100 and covered by legal fees and disbursements)
Purchases of new homes are subject to the Harmonised Sales Tax (HST).
Premiums for the New Home Warranty Program.

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Closing costs are determined by a number of factors, including the house’s purchase price and location. Calculators for land transfer taxes can help you figure out how much you owe.


Commissions paid to real estate agents
These fees vary depending on the property and location, but they typically range from 3% to 7% of the total sale price.
Fees for Legal Services
Starting at $500, depending on the complexity of the sale and the amount of time it takes to resolve any outstanding issues.
Repairs: They can start as low as a few hundred dollars if your home is in good shape, but they can also cost thousands of dollars to update a kitchen or bathroom in the hopes of raising the purchase price.
Staging: Many sellers hire a home staging professional, who will advise them on decluttering spaces, rearranging furniture to create a larger sense of space, and adding temporary accents, pillows, and pictures to create a more updated and modern version of their home. The cost of staging a home can start at $500.

Real estate law is a complex and ever-evolving field that governs various aspects of property transactions. From drafting contracts to ensuring compliance with local regulations, the legal side of real estate requires a deep understanding of the intricacies involved. What is Real Estate Law?: Real estate law encompasses a wide range of legal issues related to properties, including: Property Transactions: Property transactions involve buying or selling real estate. A real estate lawyer can help draft purchase agreements, review contracts, and facilitate the closing process. Title Searches: Title searches are crucial to ensure that a property has a clear title. Lawyers at Sarao Law can conduct thorough searches to uncover any encumbrances or claims on the property. Due Diligence: Before purchasing a property, it's essential to conduct due diligence. Sarao Law's team can help you investigate property history, zoning regulations, and any potential issues.

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