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 |