Costs to expect
Costs to expect
Beyond your down payment, there are closing costs to plan for. Some are the same everywhere and some depend on your province.
When you're buying
Down payment
5% to 20%+ of the price
Less than 20% down means mortgage default insurance. Its premium is a percentage of the mortgage and is usually added to the mortgage amount.
Legal fees & disbursements
Starting at $2,000
Your lawyer or notary handles the transfer, mortgage registration and funds. Costs for title searches, tax searches, strata/condo forms and similar items are all on top of the legal fee.
Title insurance
From about $250, based on the purchase price
A one-time fee for each mortgage registration. The policy is for the lender's benefit, protecting them against title problems, and your lawyer arranges it. If you refinance later, a new policy has to be purchased.
Home inspection
About $400 to $800
Strongly recommended for any home. Strata/condo buyers also review the strata documents.
Appraisal
About $400 to $1,000, depending on how urban or rural the property is
Some lenders order and pay for it, others pass the cost on to you. I will tell you which applies.
Property tax & utility adjustments
Varies
You reimburse the seller for any property taxes and utilities they have prepaid past the completion date.
GST/HST on new builds
Varies
Newly built homes can carry GST or HST, with rebates in some cases. Ask early.
Home insurance, moving & move-in costs
Varies
Insurance must be in place for completion. Condos can charge move-in fees or deposits.
Costs that depend on your province
The biggest difference is the tax or fee to transfer the property into your name. Choose where you're buying.
British Columbia
Property Transfer Tax (PTT)
A one-time tax paid by the buyer on the purchase price.
- The tax: 1% on the first $200,000, 2% of the price from $200,000 up to $2 million, then 3% above that, with higher rates on very expensive homes. On an $800,000 purchase, that works out to about $14,000.
- First-time buyer exemption: full exemption for homes up to $500,000. From $500,000 up to $835,000 you get a partial exemption on a sliding scale, so you pay PTT on part of the price. Above $835,000 there is no first-time buyer exemption.
- A newly built home exemption also exists, with its own price limits. Eligibility rules apply and change, so tell me early if either might apply.
- Refinancing does not trigger PTT.
Alberta
No land transfer tax
Alberta has no land transfer tax.
- You pay land titles registration fees for the title transfer and for registering the mortgage. These are based on the property value and the mortgage amount and are usually a few hundred dollars to about a thousand.
Ontario
Land Transfer Tax (LTT)
A provincial tax paid by the buyer on the purchase price.
- Tiered, from about 0.5% up to 2.5% on the higher portion of the price.
- Toronto adds its own municipal land transfer tax on top of the provincial one.
- First-time buyers can get a refund of up to $4,000 on the provincial tax (and a separate refund on the Toronto tax).
- Default insurance premiums carry provincial sales tax in Ontario, paid at closing rather than added to the mortgage.
Nova Scotia
Deed Transfer Tax
Set by each municipality, so the rate depends on where the home is.
- Rates vary by municipality, commonly around 1% to 1.5% of the purchase price.
- Ask me about the exact rate for the municipality you are buying in.
Another province
Varies
Transfer taxes, registration fees and rebates differ in every province and territory.
- Get in touch and I will walk you through the costs where you are buying.
When you're refinancing
Prepayment penalty
Varies by mortgage
The cost of breaking your current mortgage before the term ends. It depends on your lender, rate type and how much time is left. This can be the biggest cost, so we check it first.
Discharge / administration fees
Often a few hundred dollars
Charged by your current lender to release the old mortgage.
Legal fees & disbursements
Starting at $2,000
Your lawyer or notary registers the new mortgage and pays out the old one and any debts. Costs for title searches, tax searches, strata/condo forms and similar items are all on top of the legal fee.
Appraisal
About $400 to $1,000, depending on how urban or rural the property is
Needed by most lenders to confirm your home value.
Title insurance
From about $250, based on the value
A one-time fee for each mortgage registration, for the lender's benefit. A new policy has to be purchased every time you refinance, even if you had one before.
Lender or broker fees
Varies
Some alternative lenders charge a lender fee. I always tell you the full cost up front and compare it against the savings.
These are ballpark figures to help you plan, not quotes. Every purchase and mortgage is different, so I will give you your actual numbers early, before you commit. Ask Kerri.