Closing Costs

Closing costs are a not-so-fun surprise to a lot of first time homebuyers. So, let’s make sure you’re prepared. Closing costs are the expenses you will need to pay when closing the purchase of your home and obtaining your mortgage. Typical closing costs you can expect include fees for lawyers, title insurance, appraisal, home inspection, the PST on Mortgage Default Insurance as well as land transfer taxes. As a general rule of thumb, it is recommended to have funds totalling at least 1.5% of the property value to account for closing costs.

An even bigger surprise to a lot of people is that the seller has closing costs too. These include real estate commission (if applicable), their own legal fees and any costs related to discharging a mortgage they may have had on the property.