Everything you need to know about Real Estate Closing Costs

Closing costs are an essential component of every real estate transaction, whether you're buying, refinancing, or selling a home. If you're planning to purchase, refinance, or sell a home, you should be aware that there are some closing fees to consider.

Closing expenses/costs are the legal and administrative fees associated with buying, selling, or refinancing a home. This might be anything from 1.5 and 4% of the price. Other expenses and activities, in addition to closing fees, may necessitate a financial outlay prior to, during, or after the home's closing.

Closing expenses are an essential consideration when planning your home purchase, sale or refinance. If you aren't prepared, the money will add up, putting a huge strain on you. The key question is, though, how much do closing fees cost? We'll go through each of these expenditures in detail to make sure they don't sneak up on you.

#1: Closing Costs in a Home Purchase

When According to a guideline, the average closing costs in Ontario range from 1.5 percent to 4% of the purchase price.

Closing expenses are a combination of Land Transfer Tax, Real Estate Lawyer Fees, Expenses, and Costs that must be paid in addition to the down payment at the time of purchase.

Closing expenses vary by area when purchasing a home or condominium.

Closing fees are an additional expense on top of moving costs. Therefore they must be budgeted for purchasing a home.

The following are the minimum closing costs when purchasing a home:

1. Land transfer tax for province of Ontario.
2. Municipal Land Transfer Tax
3. Fees for a real estate lawyer, including disbursements
4. Title Insurance
5. Fire Insurance
6. Transfer registration and Mortgage registration fee
7. Stewart Assyst Charge (If lawyer is instructed electronically)

Optional Costs for Buying a property

Home Inspection Fees: When Buying a House, the home inspection is optional. However, it is strongly suggested that you get it done. It is usually a condition of the buying offer.

Fees for appraisals: Some lenders prefer to have the house appraised before approving the loan.

Condo Certificate: If you're buying a condo, have your lawyer check the condo certificate to ensure it's free of claims, liens, or charges.

CMHC Fees or Default Insurance Cost: Default insurance is required if your down payment is less than 20%.

Average Cost

• Land Transfer Tax $6,475
• Legal fees (Estimated) $999
• Title Insurance (Estimated) $500
• Transfer Registration $78.79
• Mortgage Registration $78.79
• HST (Tax) $117
• Stewart Assyst $28.39