complete guide to closing costs
One of the
areas where homebuyers most frequently run into problems
is with closing costs. Buyers often do not accurately
anticipate the costs associated with closing a real
estate transaction, and the resulting cash crunch can
add stress at a time when you need it least. Certain
fees are automatically assigned to either the buyer or
the seller; other costs are either negotiable, dictated
by local custom or prorated between the buyer and the
seller.
Below you will find a brief explanation of
these costs, yet it may not include all items required
specific to your property, or the area in which you have
purchased. This is a guideline, but your lawyer can
provide a fairly close estimate, and is the best resource.
Buyer’s Fees
| Costs can
range from 1.5 to 5% of total purchase price,
excluding down payment. For example, a purchase price
of $250,000 would yield: |
| Inspection Fees -
General/Structural |
$300 - $400 |
| Additional Inspection
Fees - Detailed (roof, mould, asbestos, water damage,
etc) |
|
| Mortgage Application and
Appraisal (may be waived by bank) |
$200 - $400 |
| Mortgage Insurance |
$2000 |
| Legal Fees &
Disbursements (due at time
of closing) |
$700 - $1000 |
| GST (for new homes only) |
|
| Home and Content
Insurance |
$450 |
| Moving and/or Storage
Expenses |
$500 |
Seller’s
Fees
| Costs can
range from 1.5 to 5% of total sale price. For
example, a sale price of $250,000 would yield: |
| Real Estate Commissions |
Negotiated |
| Tax Proration |
Varies |
| Unpaid Homeowners Fees |
Varies |
| Legal Fees &
Disbursements (due at time
of closing) |
$700 - $1000 |
| Real Property Report -
New |
$500 |
| Real Property Report -
Updated |
$250 |
| Mortgage Interest
Adjustments - if applicable (due at time of closing) |
$350 |
| Home and Content
Insurance |
$450 |
| Moving and/or Storage
Expenses |
$500 |
|
