Closing Costs

What Fees Will You Owe On Closing Day?

In addition to the purchase price of the home, there are costs that will be due on, or by, closing day. These are fees that must be paid for your house purchase to be complete. Most of these fees are in addition to, and separate from, your mortgage loan (although some closing costs can be tacked onto your mortgage).

We will discuss all of these costs in detail so that you are fully prepared for what to expect and can budget accordingly. Here is an idea of what to expect:

These expenses are approximations only – they may vary by region, and are prone to frequent changes.

House inspection (optional) – $500 and up. Due at the time of application.

Legal fees (including disbursements) – Expect to pay between $1000 and $1500 for a notary or real estate lawyer, but cost varies depending on the extent of services provided. Due at closing.

Land Transfer Tax – Varies by province and sometimes by municipality or city. Paid by the buyer. Due at closing. In BC Property Transfer Tax is 1% on the 1st $200,000 and 2% on the balance. A new 3% Property Transfer Tax rate will apply to the portion of a home sale that exceeds $2 million. For example, a $500,000 place would have $8000 in tax payable upon completion. This is an upfront cost and cannot be mortgaged. First time home buyers may qualify for an exemption of this tax for purchases at or below $425,000 and a pro rated exemption between $425,000 and $450,000. For more information please contact the Mike and Will Team.

Interest adjustment – Varies with mortgage amount and terms. Due at closing.

Property tax/pre-paid utilities adjustments – Varies widely, but often under $1,000. Due at closing.

Property/fire insurance – Expect to pay $300 to $700 for most properties, but it varies according to coverage level, region and property type.

Title insurance – Around $200. Applies to houses only. Due by closing.

Estoppel certificate (for condos only) – Around $100. Due by closing.

Don’t forget to budget extra funds for expenses related to moving (moving company, utility hookups) and regular housing costs once you own the home (utility bills, maintenance).

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  • Will Pratt
  • Justin Sabbagh
  • Mike Wilcox

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