Toronto Real Estate | Ken Finch

Closing costs are expenses over and above the price of the property incurred
by buyers and sellers in transferring ownership of a property which normally
include the items below. Allow approximately 2.5% of the purchase price of
your new home for closing costs.

Closing costs typically consist of:

1. Closing Adjustments
Pro-rated amounts for prepaid amounts made by the seller; e.g. Property tax

2. Land Transfer Tax
Amount varies by purchase price and city, contact Ken Finch for a
calculation

3. Legal Fees
Charges from your Real Estate lawyer for title insurance, property
registration fees and tax certificate

4. Status Certificate
For Condominiums only, this document outlines all the details of the
condominium which include the current amount of the reserve fund, common
element fees and any major renovations or repairs anticipated

5. Home Inspection
A home inspector is needed to detect any deficiencies in the property you
would like to purchase

6. PST (Soon to be HST!)
If paying less than 25% on your down payment, you must get mortgage
insurance from the Canadian Mortgage & Housing Corporation (CMHC). This fee
gets added to your mortgage which is PST applicable. The 8% PST must be paid
at closing and will increase to 13% July 1st, 2010 after the HST is
implemented.

7. Moving Costs
Moving company fees vary depending on your quantity of possessions and the
distance of your move

8. Rental Income
When purchasing a property where rent is collected, the buyer receives the
rental income that has already been paid, for the month in which the
property is purchased

9. Rent Deposit
When purchasing a property where rent is collected, the tenant usually pays
a deposit for the last month’s rent which is forwarded to the buyer at
closing