Costs Associated with Buying

Purchasing a home involves one-time costs and monthly expenses (such as mortgage, maintenance, insurance, property taxes, condo fees and utilities). The largest one-time cost is the down payment. It usually represents between 5-25% of the total price of the property. In addition to the actual purchase price, there are a number of other expenses that you might be expected to pay for. 

Expense Explanation of Expense Costs Involved When Paid
Deposit Due at time of offer. Consider a short term loan or line of credit if necessary. Usually 5% of purchase
price (Bank draft at offer)
Offer
Survey This is usually provided by seller. If not provided, that it is preferable for obtaining a mortgage & a good idea. Title insurance is a cheaper route, but has fewer options. Approximately $700 + GST Closing
 Legal Fees Shop around - varies - be sure to clarify all that the fee includes Approximately $800 - $1000 Closing
Disbursements Paid to Your Lawyer for fees that they have paid on your behalf, including registering mortgages, searching title, zoning, work orders, couriers, etc. Approximately $700 - $1000 Closing
Property Tax Adjustment If the Seller has paid taxes for the full year, you would be responsible for your portion from time of closing to the end of the year. If applicable Closing
Heating Cost Adjustment If the property is heated by oil, then the tank will be filled by the Vendor on closing, and you will be charged on the adjustments for a full tank. If applicable - approximately $360 Closing
Mortgage Processing Fee To some banks this is negotiable or waived, as you are committing a mortgage to them Approximately $150. + CMHC $235 At time of application
CMHC Fees Canada Mortgage & Housing Corp. is required to insure all mortgages that are less than 20% down payment (high ratio mortgage). Can be added to principal mortgage amount or paid at closing. Rate is 0.5% - 3.75% of loan depending on down payment (ask your banker) With mortgage payment or on closing
Home Insurance Cannot close your property without this - mortgagee must be notified of the policy. $500.00 and up Closing & Ongoing
Land Transfer Tax For Residential Resale - payable on closing - The simple calculation is as follows:
Rebates are available to 1st time home buyers.
1. Property under $55,000. Multiply $5/thousand
2. From $55,000. - $250,000. Multiply $10/thousand less $275.
3. Property $250,000. - $400,000. Multiply $15/thousand less $1525.
4. Property over $400,000. Multiply $20/thousand less $3525
  Closing
Municipal Land Transfer Tax Rebates are available to 1st time home buyers up to $400K. The simple calculation is as follows:
1. 0.5% tax on first $55,000
2. 1% on next $345,000
3. 2% on portion over $400,000
  Closing
Home Inspection
(optional)
  $400 At inspection
Miscellaneous 1. Gas Connection Charges
2. Telephone Connection Charges
3. Electricity Connection Charges
4. Moving Expenses
  Varies depending
on supplier

Ontario Land Transfer Tax

Value of Consideration OLTT Rate
Up to and including $55,000 0.5% plus
Over $55,001 to $250,000.00 1.0% plus
Over $250,001 to $400,000 1.5% plus
Over $400,001 2.0%

Toronto Municipal Land Transfer Tax

Starting February 1st 2008 a second land transfer tax was approved, on top of the provincial land transfer tax, at the following rates:

Value of Consideration MLTT Rate
Up to and including $55,000 0.5% plus
Over $55,000.00 to $400,000 1.0% plus
Over $400,000 2.0%
Home Price Ontario LTT Toronto LTT Total LTT
$ 300,000 $ 2,975 $ 2,725 $ 5,700
$ 350,000 $ 3,725 $ 3,225 $ 6,950
$ 400,000 $ 4,475 $ 3,725 $ 8,200
$ 450,000 $ 5,475 $ 4,725 $ 10,200
$ 500,000 $ 6,475 $ 5,725 $ 12,200
$ 550,000 $ 7,475 $ 6,725 $ 14,200
$ 600,000 $ 8,475 $ 8,475 $ 16,200
$ 650,000 $ 9,475 $ 8,725 $ 18,200
$ 700,000 $ 10,475 $ 9,725 $ 20,200
$ 750,000 $ 11,475 $ 11,475 $ 22,200
$ 800,000 $ 12,475 $ 11,725 $ 24,200
$ 850,000 $ 13,475 $ 12,725 $ 26,200
$ 900,000 $ 14,475 $ 13,725 $ 28,200
$ 950,000 $ 15,475 $ 14,725 $ 30,200
$ 1,000,000 $ 16,475 $ 15,725 $ 32,200

Leave a Reply

Your email address will not be published. Required fields are marked *