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BUYER CLOSING COST

Fees you’ll need to pay
1. Home Inspection Fee
2. Legal Fees 
3. Deposit
4. Costs financed in your mortgage
5. Title Insurance
6.  Mandatory closing costs covered by the home buyer Agreement
* Septic tank
* Water Tests
7   Status Certificate
8.  Appraisal Fee
9   Property Insurance
10  Prepaid Utility Bills 
11. Property Taxes
12. Land Transfer Tax
13. At the Closing Day
Cash outlays

1. Home Inspection Fee
It is highly recommended that you contract a home inspection as a condition of your Offer to Purchase. A home inspector will assemble a report on the condition of the home for a fee of around $500, depending on the complexities of the inspection.

2. Legal Fees  
Real estate lawyers manage all of the legal paperwork involved when acquiring a mortgage. After your purchase, they draft your mortgage contracts and assess the property to ensure there are no old mortgages or liens on the property. While your lender’s lawyer can do some of the work, it’s a lot of paperwork and you need to ensure everything is verified to completion with your lawyer, and you’re responsible for the bill. Lawyer fees can be quite hefty and do include HST where applicable $500 to $1000 + Expenses.
3. Deposit 
A deposit that counts towards your down payment is required when you make an Offer to Purchase. A deposit shows the seller you’re serious and committed to buying their property. It signals that you have the financial means to make the purchase and you’re comfortable taking on some level of risk until the deal closes.
Unlike your down payment, there is no minimum required amount for the deposit.
4. Costs Financed In Your Mortgage
Mortgage default insurance, or CMHC insurance, is not normally considered a traditional closing cost as it is added to the total mortgage you require and amortized over the life of your mortgage.
Mortgage default insurance. If you purchase a house with less than a 20% down payment, you will be required to buy mortgage default insurance, commonly referred to as CMHC insurance. This protects the lender in the case the borrower, defaults on the loan.
5. Title Insurance
Though not required in all provinces, title insurance protects you from such things as title defects, errors, or omissions. This includes errors in the public registry and existing surveys. Title insurance also protects you from undisclosed heirs who may try to claim your property and/or fraudulently discharged mortgages. Although it depends on the property type (resale, new, condo) and the purchase price, title insurance usually costs approximately $300. The cost is minimal and well worth the peace of mind. Ask your lawyer for more details. $300
6. Mandatory closing costs covered by the home buyer Agreement
The following is a list of closing costs that are incurred by some home buyers as they are only applicable to certain properties
Septic tank
 If the house has a septic tank, it should also be tested to ensure it is in good working order. Once again, you can negotiate the cost with the previous owner and list it in your Offer to Purchase.
Water Tests
 If the home has a well, you will want to test the quality of the water and ensure there is an adequate supply, as well as if the water is potable. You can negotiate these costs with the previous owner and list them in your Offer to Purchase.
7. Status Certificate
A status certificate –  A report on the current state of a condominium corporation, prepared by the Board of Directors, which offers a financial snapshot of the well-being of the building and information on those who run it.
The certificate fee may be payable if you are buying a condominium or strata unit, and could cost up to $100. Done by Online In Just 4 Easy Steps.
Mandatory closing costs
8. Appraisal Fee
 An appraisal, which is an estimate of the value of your home, is often covered by your mortgage lender. An appraisal is performed to certify the lender of the resale value of the home in the case you default on the mortgage. The cost is usually between $250 and $350.
Other costs to consider
9. Property Insurance
Property insurance, which covers the cost of replacing your home and its contents, must be in place on closing day. This insurance is often paid in monthly or annual premiums.
10. Prepaid Utility Bills  
You may need to reimburse the previous owner of your property for prepaid costs such as property taxes, utilities, and so forth.
11. Property Taxes
Property tax is calculated as a percentage of your home value, varies by municipality, and must be paid each year.
Example:
The residential property tax rate in Toronto is 0.83%, and on a $400,000 home, would be equal to $3,320 per year. You may need to reimburse the previous property owner if he/she has already paid property taxes for the full year. You are also given the option to set up an automatic payment plan with your lender.
An Option:  Your lender will set up an account for you, collect an additional $277 per month ($3,320 / 12 months) and then pay property taxes on your behalf. Though by no means necessary, some homeowners find this service extremely valuable for budgeting purposes.

12. Land Transfer Tax
Land Transfer Tax (LTT) is paid by everyone who purchases the property. LTT is a marginal tax you must pay to the province when “buying land” or, put, just purchasing a house or condo.
Land transfer tax must be paid once the transaction has been closed, to a max of up to 30 days after closing. 0.5 to 2% of Property Value

Closing Day is the day you finally take legal possession of your home. It’s essential the bulk of your administration is completed by this point including transferring your down payment to your lawyer. Transferring down payment funds, especially from your RRSP, can take time and should be done several days before closing.

 On the closing date, the following events will take place:

* Your lender will provide the mortgage funds to your lawyer/notary.

* You must provide, your down payment less the deposit, to your lawyer/notary and the closing costs.

* Your lawyer/notary pays the previous owner, registers the home in your name, and gives you the deed and keys to your new home.   Congratulations!   You are now ready to move in.

 

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