Closing costs are additional expenses that are required when purchasing a home. On average, your closing costs will be about 1% to 3% of your home’s purchase price. These costs will vary from province to province and city to city. Contact us to learn which costs will apply to your next mortgage transaction. Below are some of the most common closing costs:
Appraisal Fee: The purpose of an appraisal is to determine the value of the property. The appraiser helps determine a fair value of the property based on recent comparable sales in the area. Appraisal costs typically range from $375 to $500 in major centers, with additional fees for rural properties or larger lots.
Estoppel Certificate: An estoppel certificate outlines the financial state of a condominium and is often required in real estate transactions. This can typically be obtained from the condo board, and costs around $100.
Home Inspection Fee: A home inspection is conducted to identify any deficiencies in the property that may need repairs. The cost for a home inspection ranges from $350 to $500, typically completed before financing conditions are removed.
Homeowners Insurance (Fire Insurance): Homeowner’s insurance is mandatory for properties with a mortgage to ensure the home can be repaired or replaced in case of fire or other covered damages. Lenders require this insurance to protect their investment.
Legal Fees: Most lenders require a lawyer to register a mortgage with Land Titles. The lawyer will conduct a title search, draft the deed, prepare documents for the client to sign, and handle other related costs. Legal fees can range as low as $1,200 and up typically.
Title Insurance Fee: Title insurance is often required by lenders to protect against fraud and other risks associated with property ownership. The cost for title insurance starts around $300, with a one-time payment due when registering the mortgage.