CLOSING COST CALCULATOR TORONTO

CLOSING COSTS TO CONSIDER (⇓Below Toronto Closing Cost Calculator)

ClOSING COSTS TO CONSIDER

When considering the acquisition of property in Toronto, it is prudent to recognize that the financial commitment extends beyond the initial purchase price of the home. It is customary for lenders to request evidence that the prospective buyer has allocated at least 1.5% of the purchase price to cover anticipated Toronto closing costs. This percentage serves as a provisional estimate and not the definitive cost.

For a precise evaluation of the expenses associated with the purchase of a specific property, I invite you to engage with me directly. Below is a detailed breakdown of potential costs:

*PLEASE NOTE: Lenders will want proof that you have at least 1.5% of the purchase price for closing costs. This is not how much they will actually be, but rather a generic estimate. Try the Closing Costs Toronto Calculator above.

Every home will have different costs associated with purchasing it. Please contact me directly for estimates on the items below.

Deposit

Paid to your Realtor usually upon acceptance or subject removal

Down Payment

Paid on closing date to your lawyer. Minimum 5% (and 10% on amounts above $500,000) for owner occupied and 20% for rental purchases, although if the home price is above $1,000,000 then the down payment will be 20%, which is most often the case in Toronto.

Default Mortgage Insurance

If you have less than 20% down on Toronto home purchase, then you’ll be required to get mortgage insurance.  The premium will be included in your mortgage, but you will have to pay the PST (8%) at closing.

Property Tax Adjustment

Calculated by your lawyer/notary at completion.  This is the amount that the seller has either overpaid or under paid for their portion of the year that they were the owner of the home.

Property Tax Hold-back

If the lender is paying the Toronto property taxes on your behalf, they may require a lump sum at closing to start the property tax account

Toronto Utility Transfer fees

Enbridge, Toronto Hydro, Telephone, Cable

Toronto Land Transfer Tax 

Refer to your lawyer for details. First Time Homebuyers may be exempt or get a reduction.

Appraisal Fees

May be required. The purpose is to confirm the value and condition of the home

Home Inspection

Not generally a lender requirement, but strongly recommended. If deficiencies are found and a price reduction occurs, the lender may request a copy.

Land Survey or Title Insurance

Most lenders will require title insurance which is done through the solicitor at closing.

House Insurance

You will be required to arrange adequate house insurance to cover the value of your home with “loss payable” to the lender. The replacement value typically has to be supported by the purchase price. Strata-titled properties are typically covered under the Strata Corporation blanket policy however further insurance may be required.

Legal Fees

A lawyer or notary will charge you professional and disbursement fees for conducting various title searches, preparing and registering the mortgage.

Life Insurance

Life insurance and/or creditor insurance is not required however it is strongly recommended that you have some type of coverage

Closing Adjustments

You should expect some closing adjustments for bills that the seller has prepaid such as property taxes and utility bills. This will be settled at the time of closing by your lawyer/notary.

GST

For confirmation ask realtor.