Brampton Real Estate home

Closing Costs Worksheet

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Buying your first home is an exciting process. You determined how much home you can afford, you saved your down payment, you and your REALTOR® found the perfect home and your offer was accepted. While the purchase price of your home is the largest cost you will encounter, there are other costs to prepare for when buying a home.

 

It's a good idea to budget some extra cash to cover the cost of obtaining a mortgage and "closing" your real estate transaction. 

 

Buyers, budget for 2 - 2.5%; first time buyers, budget 1.5%. Here are some of the cost items you should consider:

 

 

  Buying Selling

Appraisal fee

Mortgage lenders will usually loan a percentage of the home's purchase price or the market appraisal of the property, whichever is lower. The appraisal is either done by someone on the lender's staff or by an outside professional approved by the lender. The cost of the appraisal is most often the responsibility of the home buyer.

 

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Approx cost = $100 - $250

(may not be necessary)

 

n/a

 

 

 

Mortgage Application fee / Processing Fee

Find out whether or not your lending institution charges to process your mortgage application. In many cases, if you are dealing with a bank that you have other accounts with, they will waive the application fee.

 

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Approx cost = $165-$185

(may not be necessary)

 

n/a

 

 

 

Land survey fee

Lenders require a plot plan or survey of the property you intend to buy. On properties located in subdivisions in urban areas, lenders will often accept an existing survey, depending on when it was done. However, if there is no existing survey, be prepared to pay a substantial fee for a new survey.
Home inspection fee

Many homebuyers choose to have a home inspection done prior to finalizing their offer to purchase. Some lenders require a professional home inspection as well.

 

____________________

Approx cost = $600-$900

(may not be necessary)

 

 

n/a

 

 

 

 

HST

If you are buying a new home, you will be required to pay Goods and Services Tax of seven percent on the price of your home. HST does not apply to most resale homes.

 

___________________

Approx cost = $13% less rebate

n/a

 

 

Home Inspection

The home inspection is for the benefit of the buyer to ensure the home has no major flaws and will notify the buyer of potential issues in the future. A home inspection is well worth the cost, but make sure your inspector is qualified and has liability insurance.

 

___________________

Approx cost = $300 - $400

 

n/a

 

 

Land transfer tax

This tax is payable by anyone who purchases property in Ontario. A REALTOR® or lawyer can help you calculate how much tax you will pay on your purchase.

 

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See below or use Calculator

 

n/a

 

 

 

High Ratio Mortgage Insurance

There are several types of insurance that may be required when buying your home. If you are arranging a "high-ratio" mortgage (less than 25% down payment) you will need to purchase mortgage insurance. Mortgage lenders require you to carry fire and extended coverage insurance that exceeds the amount of the outstanding balance of the buildings. Other insurance you may want to consider include title insurance and life insurance.

 

___________________

See below or use calculator. Can be added to mortgage

 

n/a

 

 

Real Estate Fees

Selling a home involving real estate agents has a fee for services: 1. to pay the Listing/Selling agent & 2. Buying agent. Most often, the seller pays the buying agent his fee and is part of the overall commission charged. The fee for each service is negotiable and can vary by agent & brokerage.

 

$0

 

 

 

___________________

About 5% but varies depending on agent & plan

 

Legal fees

You will need to pay your lawyer to arrange your mortgage as well as for "disbursements" such as title search, drawing up the title deed and preparing and registering the mortgage.

 

___________________

Approx cost = $1000 - $1200

 

__________________

Approx cost = $800 - $1000

 

Other costs - Adjustments

You will likely have to make property tax adjustments and interest adjustments on utility bills, heating oil etc. Ask your REALTOR® to explain these additional costs so you have no surprises on closing day.
Maintenance and utility costs

 

Finally, be sure to budget for heating, electricity, water and any immediate renovations you may have planned. It's a good idea to put aside any spare cash and contribute regularly to a maintenance fund so you will be prepared for any repairs or upgrades you need to make along the way.

 

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Approx cost = variable

 

 

__________________

Approx cost = variable

 

 

Mortgage Discharge & Administration Fee

Mortgage lenders typically charge the mortgagee a fee to discharge a mortgage ahead of the term. This fee can range from

n/a

 

 

 

__________________

ask lender: $1000 - $20,000

 

Mortgage Payout

Once a home is sold, the mortgagor requires the payout of the mortgage

 

n/a

 

 

__________________

variable

 

 

 

 


Land Transfer Tax

  • 0.5% of the value of the consideration up to and including $55,000,
  • 1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and
  • 1.5% of the value of the consideration which exceeds $250,000, and
  • 2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.

Toronto Municipal Land Transfer Tax Rates (in addition to the Provincial LTT above):

  • Up to and including $55,000.00  0.5%  plus
  • $55,000.01 to $400,000.00 1.0%  plus
  • Over $400,000.00 2.0%

 

 

CMHC Insurance Fees

Loan-to-Value Premium on Total Loan Premium on Increase to Loan Amount for Portability and Refinance
Standard Premium Self-Employed without 3rd Party Income Validation Standard Premium Self-Employed without 3rd Party Income Validation**
Up to and including 65% 0.50% 0.80% 0.50% 1.50%
Up to and including 75% 0.65% 1.00% 2.25% 2.60%
Up to and including 80% 1.00% 1.64% 2.75% 3.85%
Up to and including 85% 1.75% 2.90% 3.50% 5.50%
Up to and including 90% 2.00% 4.75% 4.25%* 7.00%*
Up to and including 95% 2.75% N/A 4.25%* *
90.01% to 95% —
Non-Traditional Down Payment***
2.90% N/A * N/A
Extended Amortization Surcharges
Add 0.20% for every 5 years of amortization beyond the 25 year mortgage amortization period.†

 

 

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